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Buying Your Next Home: Closing

 Hoffer Realty Associates can walk you through closing - 8143712100
Escrow: When you're closing on your new home, a neutral, third party (known as the escrow holder or the escrow agent) is used to guarantee the transaction will close without problems and in a timely manner. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to think of what an escrow company does is to think of the use of PayPal for online purchases.

Tying up any loose ends like taking in funds, completing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the house prior to your purchase gets finalized are all part of the job of the escrow agent.

These are the documents that escrow holders usually compile:

  • 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

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 taken. Title to the house is then given to you as now current homeowner and correct title insurance is issued as outlined in the escrow instructions.

At the close of escrow, fees are paid in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Write escrow instructions
  • Perform a title research
  • Comply with lender's standards as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse payments and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow agent stays a neutral, third-party status
  • Give insight about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Request title inquiry
  • Meet the bank's requirements as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finalize instructions
  • Tell you what's best - the escrow holder must maintain a neutral, third-party status
  • Offer opinions about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

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


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