An escrow agent is used to assure your home closes on time and the process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it’s in escrow. An everyday way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.
The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are completed prior to the sale being completed.
Whether or not it’s your first home, we’ll educate you throughout the process.
These are the legal documents that escrow companies usually look for:
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 each step of the complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The home’s title is given to you and title insurance begins per the policies of your particular escrow process.
At the close of escrow, in an acceptable form to the escrow. I’ll keep you updated on the through the procedure.
The Escrow Holder Will:
Prepare escrow guidelines
Petition title search
Comply with lender’s requirements as specified in the escrow agreement
Receive funds from the buyer
Prorate interest, insurance, tax and other payments according to instructions
Record deeds and other documents as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer are met
Disburse payments and finish instructions
The Escrow Holder Won’t:
Advise you – the escrow company has to remain an impartial, third-party status
Dispense opinions about the outcome of your taxes
Mortgage Escrow Account
A Mortgage Escrow Account is started to make payments for rolling fees 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.
Once you’re at ease with the escrow process, you can be a better buyer.