Whether it's your first home or your next property, I'll walk you through the process.
Call me at 858-792-5100 and I'll give you more information.
Steps to Closing on a Home
First, a little about "escrow". An escrow agent is used to assure your house closes on time and the transaction goes smoothly.
A place is said to be in escrow when in the closing process, funds is held by a third party on behalf of two parties when the exchange of money takes place.
PayPal is a good way to picture an escrow company.
The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finalized. This includes getting monies and paperwork, completing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your home before the asking price is fully paid.
Escrow companies collect the following records:
- 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
You're ready to close when each step of the complete in escrow process.
All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions).
The home's title goes to you and title insurance begins per the policies of your particular escrow process.
The escrow agent receives a payment when the closing is complete.
As your agent, I'll inform you of the acceptable way of paying.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Prepare escrow guidelines
- Request title inquiry
- Meet the bank's guidelines as noted in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse monies and finalize instructions
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- Give advice - the escrow agent stays at an impartial, third-party status
- Give insight about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is started to pay on-going 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.
Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.