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What To Expect When You're Closing in DuBois

 Hoffer Realty Associates can walk you through closing - 8143712100
First, a little about "escrow". When you're closing on your new property, an escrow agent is used to assure the transaction will close correctly and in a specific time frame. A place is said to be in escrow when in the closing transaction, money 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. An everyday way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are performed in preparation of the sale being completed.

These are the pieces of paperwork that escrow holders usually look to collect:

  • 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

Closing on the house takes place when the steps of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. The property's title goes to you and title insurance is issued per the policies of your individual escrow process.

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

The Escrow Holder Will:

  • Prepare escrow instructions
  • Petition title research
  • Comply with the bank's guidelines as written in the escrow agreement
  • Intake funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse payments and finalize instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow company has to remain an impartial, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Petition title search
  • Meet the bank's standards as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax 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 monies and finalize instructions
  • Give advice - the escrow company stays a neutral, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling expenses while there is a loan on the 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.

This is a quick run-down of the escrow process. Your individual methods could be slightly different based on your bank and your escrow agent.


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