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 to get some free information.

Steps to Closing on a Home

 Hoffer Realty Associates can walk you through closing - 8143712100
Let's talk about "escrow". To close the sale of a house, a neutral, third party (the escrow company) is employed to assure the process will close properly and on time. A home is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of two parties when the exchange of money takes place. An easy way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finished. This includes securing monies and certificates, signing required forms, and obtaining the release documents for any loans or liens that were paid with the transaction, assuring you have a free title to your home before the negotiated price is fully paid.

These are the pieces of paperwork that escrow companies 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

You're ready to close when all steps are finished in escrow process. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the property and the title insurance gets dispersed as stated in the escrow instructions.

When closing is completely finished, you'll submit a payment to the escrow holder. As your real estate agent, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Petition title research
  • Comply with the bank's requirements as outlined in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • 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

The Escrow Holder Will Not:

  • Offer advice - the escrow agent stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Petition title research
  • Comply with the bank's requirements as written 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 met
  • Disburse monies and finish instructions
  • Advise you - the escrow agent must maintain a neutral, third-party status
  • Offer opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for on-going expenses while there is a loan on the 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 informed home buyer and future homeowner.


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