First-Time Home Buying: How To Close on a Property
The escrow agent makes sure that the terms and conditions of the agreement between the two parties are performed in preparation of the sale being completed.
The records the escrow holder may secure include:
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
Upon completion of all instructions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. Title to the home is then transferred to you as buyer and related title insurance is issued as noted in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. We'll keep you updated on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.