Whether it's your first house or your next property, I'll educate you through the process. Contact me and I'll make sure you're a well-informed buyer.

Buying Your Next House: Closing

 Southern Homes of the Carolinas can walk you through closing - (704) 896-2000
Let's talk about "escrow". An escrow company is used to assure your place closes on time and the money exchanging part of closing goes smoothly. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an online purchase, PayPal is the secure third party that obtains the buyer's payment, and then disburses the payment to the seller.

Settling the last details like receiving funds, finishing forms, obtaining the documents for loans and liens, and assuring you get a spotless title to the property in preparation of your purchase gets finalized are all part of the job of the escrow holder.

These are the records that escrow holders usually compile:

  • 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

Upon completion of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the house is then given to you as buyer and appropriate title insurance is issued as noted in the escrow instructions.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. I'll keep you informed on what comes next.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title search
  • Comply with lender's guidelines as written in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse payments and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent must maintain a neutral, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Request title inquiry
  • Meet lender's standards 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
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse funds and finalize instructions
  • Tell you what's best - the escrow company stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

This is a simple outline of the escrow process. Your specific plan might be different based on your bank and your escrow agent.

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