Don't let inexperience with the real estate industry scare you from becoming a homeowner. I can help you become knowledgeable about the process. Call me at 410-647-8000 ext. 817 and I'll give you more information.
The Home is Almost Yours
Escrow: To complete the sale of a property, a neutral, third party (the escrow holder) is engaged to assure the process will close appropriately and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a good way to picture an escrow company.
The escrow company makes sure that the terms and conditions of the agreement between the two parties are performed in preparation of the sale being finished.
These are the documents that escrow holders usually compile:
- 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
- Terms of sale and any seller-assisted financing
Closing on the property takes place when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as now current homeowner and appropriate title insurance is issued as outlined in the escrow instructions.
When closing is completed, you'll make a payment to the escrow holder. As your real estate professional, I'll inform you of the acceptable way of paying.
The Escrow Holder Will:
- Write escrow guidelines
- Perform a title research
- Meet lender's guidelines as outlined in the escrow agreement
- Intake 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 instructions of seller and buyer have been finished
- Disburse funds and finish instructions
The Escrow Holder Won't:
- Give advice - the escrow holder stays at an impartial, third-party status
- Dispense opinions about the outcome of your taxes
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The Escrow Holder Will:
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The Escrow Holder Won't:
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- Prepare escrow instructions
- Petition title search
- Meet lender's standards as noted in the escrow agreement
- Receive payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse funds and finish instructions
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- Give advice - the escrow holder has to remain an impartial, third-party status
- Dispense opinions about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is established to pay recurring fees while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.