The process of buying a house for the first time can be confusing. Let me help you. Contact me and I'll make sure you're a confident buyer.
Using an Escrow Agent
A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your home closes on time and the transaction goes smoothly. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. An easy way to understand the concept of what an escrow company does is to think of the use of PayPal for Internet purchases.
Settling the last details like taking in funds, signing forms, getting the documents for loans and liens, and making sure you get a spotless title to the house in preparation of your purchase gets finalized are all parts of closing in which an escrow company is useful.
The records the escrow company may collect 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
You're ready to close when all parts are complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. The property's title goes to you and title insurance is issued per the policies of your individual escrow agreement.
The escrow agent receives a payment when the closing is complete. I'll keep you updated on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
Mortgage Escrow Account
A Mortgage Escrow Account is used to pay on-going fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the basics of the escrow process down, you can be a confident buyer.