Don't let inexperience with the real estate industry keep you from becoming a homeowner. I can help you understand the process. Call me at 561-929-5799 and I'll give you more information.

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

 Silver International Realty, Inc. can walk you through closing - 561-929-5799
First, a little about "escrow". An escrow company is hired to assure your home closes on time and the transaction goes smoothly. 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 (in this case, a buyer and a seller) when the transaction is taking place. A simple way to understand the concept of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being finished. This includes securing funds and records, completing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clean title to your place before the asking price is fully paid.

Escrow holders want to obtain the following records:

  • 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
  • Tax statements

Upon finishing 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 receive the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.

When closing is completed, you'll submit a payment to the escrow holder. I'll keep you updated on the next steps.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title inquiry
  • Meet lender's guidelines as noted in the escrow agreement
  • Receive funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finalize instructions

The Escrow Holder Won't:

  • Advise you - the escrow agent stays at an impartial, third-party status
  • Offer opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title inquiry
  • Comply with the bank's requirements as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest 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 are met
  • Disburse payments and finish instructions
  • Offer advice - 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 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.

Once you have the rules of the escrow process down, you can be a informed buyer.