Whether it's your first home or your next place, I'll advise you through the process. E-mail me at chs@silverhouses.com to get some free information.

First-Time Home Buying: How To Close on a House

 Silver International Realty, Inc. can walk you through closing - 561-929-5799
First, a little about "escrow". To close the sale of a place, a neutral, third party (the escrow holder) is engaged to assure the process will close correctly and on time. A home is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties when the transaction is taking place. PayPal is a good example of an escrow company.

Clearing the final hurdles like receiving funds, completing forms, obtaining the documents for loans and liens, and assuring you get a clean title to the house before your purchase gets finalized are all part of the job of the escrow holder.

These are the records that escrow holders usually look for:

  • 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
  • Title insurance policies

Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the home and the title insurance gets dispersed as noted in the escrow instructions.

At the close of escrow, in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Prepare escrow guidelines
  • Petition title research
  • Meet lender's standards as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent stays at an impartial, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Request title research
  • Meet the bank's standards as outlined in the escrow agreement
  • Intake funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse payments and finalize instructions
  • Tell you what's best - the escrow holder must stay at a fair, 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 rules of the escrow process down, you can be a better buyer.