Purchasing real estate for the first time can be intimidating. I can help. E-mail me at david@masseyre.com .

First-Time Home Buying: Closing

 David Massey Real Estate can walk you through closing - (336) 226-9374
Escrow: An escrow holder is used to assure your house closes on time and the process goes smoothly. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet auction, PayPal is the reliable third party that holds the buyer's cash, and then hands over the money to the seller.

Settling the last details like receiving funds, finishing forms, getting the documents for loans and liens, and assuring you get a spotless title to the property prior to your purchase gets finalized are all parts of closing in which an escrow holder is useful.

Escrow holders compile the following legal documents:

  • 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
  • Terms of sale and any seller-assisted financing

Upon completion of all portions of the escrow, closing can take place. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title gets transferred to you and title insurance is issued per the policies of your particular escrow agreement.

When closing is done, you'll pay the fees to the escrow company. As your real estate professional, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title search
  • Meet lender's standards as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder must maintain a neutral, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title research
  • Meet the bank's requirements as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse funds and finalize instructions
  • Tell you what's best - the escrow company has to remain an impartial, third-party status
  • Give insight about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for recurring 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.

This is a easy to understand guide about the escrow process. Your particular process will be different based on your lender and your escrow company.

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