How Escrow Works.

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:

  • 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
  • Loan documents

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.