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First-Time Home Buying: How To Close on a Property

 Partnership Properties can walk you through closing - (662) 843-8850
Escrow: An escrow holder is used to assure your property closes on time and the closing process goes smoothly. A home is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of two parties when the transaction is taking place. An everyday way to understand what an escrow company does is to compare it to PayPal for Internet purchases.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's agreement are completed prior to the sale being finalized. This includes securing payments and documents, signing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your home before the asking price is fully paid.

Escrow holders look for the following documents:

  • 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

Closing on the house happens when all of the procedures of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the house is then transferred to you as buyer and related title insurance is issued as noted in the escrow instructions.

At the close of escrow, payments are submitted in an acceptable form to the escrow. As your agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Write escrow instructions
  • Request title inquiry
  • Meet lender's requirements as outlined in the escrow agreement
  • Receive funds 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 terms of agreement of seller and buyer have been met
  • Disburse funds and finalize instructions

The Escrow Holder Won't:

  • Advise you - the escrow holder has to remain an impartial, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Request title search
  • Comply with lender's requirements as specified in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees 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 have been finished
  • Disburse monies and finalize instructions
  • Offer advice - the escrow holder has to remain an impartial, third-party status
  • Offer opinions 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. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Once you're familiar with the escrow process, you can be a informed buyer.

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