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What To Expect When You're Closing in EDGEWATER
First, a little about "escrow". When you're closing on your new place, an escrow holder is used to guarantee the process will close correctly and in a certain amount of time.
Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller.
A simple way to understand the concept of what an escrow company does is to think of the use of PayPal for online purchases.
The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being finished. This includes securing monies and paperwork, signing required forms, and getting the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your house before the agreed upon price is fully paid.
The pieces of paperwork the escrow company may secure include:
- 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
- Loan documents
- Tax statements
Upon finishing of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
You'll then secure the title to the home and the title insurance gets dispersed as agreed upon in the escrow instructions.
When closing is finished, you'll submit a payment to the escrow holder.
I'll keep you informed on the next steps.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow guidelines
- Perform a title search
- Meet lender's requirements as outlined in the escrow agreement
- Receive payments from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- 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 funds and finalize instructions
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- Tell you what's best - the escrow company has to remain an impartial, third-party status
- Give insight about tax implications
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Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your individual process could be slightly different based on your lender and your escrow agent.