Purchasing property for the first time can be confusing. I can help.
Call me at 3362131617 and I'll give all the info you'll need to move forward. *Please note* Great Scott Properties does not retain earnest money for any transaction, we recommend that the buyer's attorney be responsible for any escrow during the home purchase.
What is Escrow?
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your property closes on time and the closing process goes smoothly.
A place is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of two parties when the exchange of money takes place.
An everyday way to think of what an escrow company does is to think of how you might use PayPal for Internet purchases.
Clearing the final hurdles like obtaining funds, completing forms, getting the documents for loans and liens, and assuring you get a spotless title to the house in preparation of your purchase gets finalized are all part of the job of the escrow company.
These are the legal forms that escrow companies usually compile:
- 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
Closing on the property takes place when all of the procedures of the escrow are complete.
All expenses like title insurance, inspections and real estate commissions are paid.
The home's title gets transferred to you and title insurance begins per the policies of your particular escrow process.
At the close of escrow, in an acceptable form to the escrow.
I'll keep you updated on what comes next.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow guidelines
- Perform a title inquiry
- Meet the bank's standards as written in the escrow agreement
- Receive payments from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse monies and finish instructions
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- Advise you - the escrow holder must maintain a neutral, third-party status
- Offer opinions about tax implications
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Mortgage Escrow Account
A Mortgage Escrow Account is used to pay on-going expenses while there is a loan on the house.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you're at ease with the escrow process, you can be a better buyer.