Learn More About the Escrow Process

Whether it's your first house or your next home, I'll walk you through the process. Contact me and I'll make sure you're a well-informed buyer.

Completing the Transaction

Hoffer Realty Associates can walk you through closing - 8143712100

Let's talk about "escrow". When you're closing on your new property, an escrow company is used to make sure the transaction will close without problems and in a certain amount of time. A property is said to be in escrow when in the closing transaction, funds is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in a Web auction, PayPal is the neutral third party that holds the buyer's cash, and then sends the funds to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the two parties are performed in preparation of the sale being finalized.

The certificates the escrow company may secure 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

You're ready to close when every step is done in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the house is then transferred to you as buyer and related title insurance is issued as outlined in the escrow policy.

When closing is completely finished, you'll submit a payment to the escrow holder. I'll keep you up-to-date on what comes next.

The Escrow Holder Will:

Assemble escrow instructions
Perform a title inquiry
Meet lender's guidelines as specified in the escrow agreement
Receive payments from the buyer
Prorate tax, interest, insurance and other fees according to guidelines
Record deeds and other paperwork as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer are complete
Disburse funds and finalize instructions

The Escrow Holder Won't:

Advise you - the escrow agent must maintain a neutral, third-party status
Offer opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Request title research Comply with lender's requirements as outlined in the escrow agreement Accept payments from the buyer Prorate insurance, tax, interest 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 are complete Disburse funds and finish instructions		Advise you - the escrow company stays at an impartial, third-party status Dispense 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.

This is a quick run-down of the escrow process. Your specific plan may be different depending on your bank and your escrow company.