Rules for Using an Escrow Company

Buying property for the first time can be confusing. Let me help you. Call me at 8283213101.

Steps to Closing on a House

Nantahala Real Estate Company, INC can walk you through closing - 8283213101

First, a little about "escrow". An escrow agent is used to assure your house closes on time and the money exchanging part of closing goes smoothly. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. An everyday way to think of what an escrow company does is to think of how you might use PayPal for Internet purchases.

The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finalized. This includes getting funds and records, signing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a free title to your house before the purchase price is fully paid.

These are the legal documents that escrow holders usually compile:

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 finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then given to you as new homeowner and related title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payments are submitted 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
Perform a title inquiry
Meet the bank's requirements as specified in the escrow agreement
Intake payments from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other legal documents as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer have been finished
Disburse payments and finish instructions

The Escrow Holder Won't:

Offer advice - the escrow holder must maintain a neutral, third-party status
Offer opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Perform a title research Comply with the bank's requirements 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 paperwork as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse monies and finalize instructions		Tell you what's best - the escrow agent must maintain a neutral, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling expenses while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.