Don't let the unknown prevent you from becoming a homeowner. I can help you work your way through the process. E-mail me at mark.hoffer@verizon.net .

First-Time Home Buying: How To Close on a House

 Hoffer Realty Associates can walk you through closing - 8143712100
Escrow: To close the sale of a house, a neutral, third party (the escrow agent) is engaged to assure the transaction will close properly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet transaction, PayPal is the secure third party that obtains the buyer's funds, and then sends the money to the seller.

The escrow company insures that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being finalized. This includes receiving funds and records, finishing required forms, and getting the release documents for any loans or liens that have been paid off with the transaction, assuring you have a free title to your place before the asking price is fully paid.

These are the records that escrow agents usually look to collect:

  • 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
  • Fire and other insurance policies

Closing on the property takes place when all of the procedures of the escrow are complete. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then transferred to you as new owner and appropriate title insurance is issued as outlined in the escrow policy.

The escrow company receives a payment at the completion of closing. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Perform a title search
  • Meet lender's requirements as noted in the escrow agreement
  • Intake payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Offer advice - the escrow company stays at an impartial, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Request title search
  • Comply with lender's requirements as outlined in the escrow agreement
  • Receive payments from the buyer
  • Prorate tax, interest, insurance and other fees 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 are met
  • Disburse monies and finish instructions
  • Offer advice - the escrow agent 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. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Once you have the rules of the escrow process down, you can be a confident buyer.


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