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Closing the Sale in Burlington, North Carolina

 David Massey Real Estate can walk you through closing - (336) 226-9374
Let's talk about "escrow". When you're closing on your new home, an escrow agent is used to ensure the process will close correctly and in a specific time frame. A house is said to be in escrow when in the closing process, funds is held by a third party on behalf of a buyer and a seller when the transaction is taking place. For example, in an online auction, PayPal is the neutral third party that holds the buyer's money, and then hands over the payment to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the two parties are reached in preparation of the sale being finalized.

The certificates the escrow holder may obtain include:

  • 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
  • Fire and other insurance policies

Upon finishing of all portions of the escrow, closing can take place. All payments owed and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then given to you as buyer and appropriate title insurance is issued as noted in the escrow policy.

The escrow holder gets a payment when the closing is complete. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Write escrow guidelines
  • Perform a title inquiry
  • Meet the bank's guidelines as noted in the escrow agreement
  • Intake payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow agent must maintain a neutral, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Request title search
  • Comply with lender's guidelines as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse monies and finish instructions
  • Advise you - the escrow company has to remain an impartial, third-party status
  • Give insight about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

This is a simple outline of the escrow process. Your individual methods will vary based on your bank and your escrow company.

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