Don't let the unknown scare you from becoming a homeowner. I can help you become knowledgeable about the process. Contact me.

Steps to Closing on a Property

 David Massey Real Estate can walk you through closing - (336) 226-9374
Let's talk about "escrow". To complete the sale of a property, a neutral, third party (the escrow company) is engaged to assure the transaction will close properly and on time. A property is said to be in escrow when in the closing process, money 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 purchase, PayPal is the neutral third party that holds the buyer's payment, and then hands over the funds to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are met prior to the sale being finished.

Escrow holders compile the following documents:

  • 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

You're ready to close when every step is done in escrow process. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the home and the title insurance gets issued as agreed upon in the escrow instructions.

The escrow holder receives a payment at the completion of closing. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Perform a title inquiry
  • Meet lender's requirements as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent must stay at a fair, third-party status
  • Dispense opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Petition title inquiry
  • Comply with lender's guidelines as outlined in the escrow agreement
  • Accept funds 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 met
  • Disburse funds and finalize instructions
  • Offer advice - the escrow holder stays a neutral, third-party status
  • Dispense opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for rolling fees while there is a loan on the 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 easy to understand guide about the escrow process. Your particular plan could vary based on your lender and your escrow agent.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details