Rules for Using an Escrow Company

Don't let the unknown keep you from becoming a homeowner. I can help you work your way through the process. Call me at 8283213101.

The Property is Almost Yours

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

First, a little about "escrow". To finalize the sale of a place, a neutral, third party (the escrow agent) is brought into the picture to assure the transaction will close correctly and on time. A place is said to be in escrow when in the closing process, money is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. For example, in an online auction, PayPal is the secure third party that holds the buyer's payment, and then hands over the funds to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are met prior to the sale being finalized.

These are the records that escrow agents usually compile:

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 every step is finished in escrow process. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title goes to you and title insurance begins per the steps of your particular escrow process.

The escrow agent receives a payment at the completion of closing. As your real estate agent, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

Prepare escrow instructions
Petition title research
Meet lender'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 paperwork as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer are complete
Disburse monies and finish instructions

The Escrow Holder Will Not:

Tell you what's best - the escrow holder must stay at a fair, third-party status
Dispense opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Petition title research Meet the bank's guidelines as written in the escrow agreement Accept payments from the buyer Prorate tax, interest, insurance and other fees 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 monies and finish instructions		Advise you - the escrow company stays at an impartial, third-party status Give insight 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. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about being in escrow. And, you can be a smarter 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.