Purchasing a home for the first time can be intimidating. I can help. E-mail me at Nathan@ParkPropertyGroup.com .

Buying Your Next Home: Closing

 Park Property Group can walk you through closing -
First, a little about "escrow". An escrow holder is brought on to assure your home closes on time and the process goes smoothly. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to understand the concept of what an escrow company does is to compare it to PayPal for Internet purchases.

Clearing the final hurdles like receiving funds, completing forms, securing the documents for loans and liens, and assuring you get a spotless title to the home in preparation of your purchase gets finalized are all part of the job of the escrow agent.

The certificates the escrow holder may secure include:

  • 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
  • Loan documents

Closing on the house happens when the steps of the escrow are finished. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title gets transferred to you and title insurance begins per the steps of your particular escrow agreement.

When closing is completely finished, you'll submit a payment to the escrow holder. As your REALTOR, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Write escrow guidelines
  • Request title search
  • Meet lender's standards as written 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
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow agent has to remain an impartial, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Request title research
  • Meet the bank's requirements as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments 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 monies and finalize instructions
  • Advise you - the escrow agent stays at an impartial, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay recurring 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.

This is a easy to understand guide about the escrow process. Your specific process could be different based on your bank and your escrow holder.

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