Whether it's your first property or your next home, I'll walk you through the process. E-mail me at mark.hoffer@verizon.net to get some free information.

First-Time Home Buying: Closing

 Hoffer Realty Associates can walk you through closing - 8143712100
First, a little about "escrow". When you're closing on your new house, an escrow agent is used to ensure the transaction will close properly and in a timely manner. A house is said to be in escrow when in the closing process, money is secured by a third party on behalf of a buyer and a seller when the transaction is taking place. A simple way to think of what an escrow company does is to think of how you might use PayPal for Internet purchases.

The escrow company is careful to assure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finalized. This includes securing payments and certificates, finishing required forms, and seeking out the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a free title to your place before the negotiated price is fully paid.

The documents the escrow company may secure include:

  • 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
  • Loan documents
  • Tax statements

Upon completion of all instructions of the escrow, closing can take place. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets transferred to you and title insurance is issued per the steps of your individual escrow process.

When closing is completed, you'll pay the fees to the escrow company. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

  • Write escrow guidelines
  • Perform a title inquiry
  • Comply with the bank's guidelines as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent has to remain an impartial, third-party status
  • Give insight about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Perform a title inquiry
  • Meet the bank's requirements as outlined in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse payments and finish instructions
  • Advise you - the escrow company must maintain a neutral, third-party status
  • Offer opinions about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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 how to close on your future home. And, you can be a more confident home buyer and future homeowner.


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