Whether it's your first place or your next place, I'll help you through the process. E-mail me at info@bigbearrevt.com .

Buying Your Next House: Closing

 Big Bear Real Estate can walk you through closing - 802-744-6844
First, a little about "escrow". To close the sale of a property, a neutral, third party (the escrow holder) is employed to assure the transaction will close properly and on time. Escrow holders hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet purchase, PayPal is the reliable third party that holds the buyer's payment, and then hands over the payment to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being completed.

These are the legal forms that escrow holders usually compile:

  • Requests for payment for various services to be paid out of escrow funds
  • Loan documents
  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing

Closing on the property happens when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as new owner and appropriate title insurance is issued as noted in the escrow policy.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

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

The Escrow Holder Won't:

  • Give advice - the escrow holder stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Petition title inquiry
  • Comply with lender's standards as outlined in the escrow agreement
  • Receive 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 terms of agreement of seller and buyer have been met
  • Disburse payments and finalize instructions
  • Tell you what's best - the escrow agent must stay at a fair, third-party status
  • Offer opinions about future tax estimations

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 specific methods may be slightly different depending on your lender and your escrow agent.

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