Whether it's your first place or your next house, I'll educate you through the process. Call me at 800-252-6633 and I'll give you more information.

Steps to Closing on a Home

 Metro Properties can walk you through closing - 800-252-6633
Let's talk about "escrow". When you're closing on your new place, a neutral, third party (known as the escrow holder or the escrow agent) is used to make certain the transaction will close appropriately and in a specific time frame. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. An easy way to understand the concept of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are met prior to the sale being finalized.

The documents the escrow company may obtain include:

  • Loan documents
  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds

Upon finishing of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. You'll then secure the title to the property and the title insurance gets dispersed as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Petition title inquiry
  • Meet lender's guidelines as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse payments and finalize instructions

The Escrow Holder Will Not:

  • Advise you - the escrow agent stays at an impartial, third-party status
  • Offer opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Request title search
  • Comply with the bank's guidelines as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse funds and finish instructions
  • Offer advice - the escrow holder must stay at a fair, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're comfortable with the escrow process, you can be a confident buyer.

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