Don't let the unknown prevent you from becoming a homeowner. I can help you understand the process. E-mail me at denise@denisewhitehead.com .

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

 Berkshire Hathaway HomeServices - Anderson Properties can walk you through closing - (405) 823-4928
First, a little about "escrow". An escrow holder is hired to assure your property closes on time and the process goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. A simple way to understand what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being completed. This includes securing funds and documents, completing required forms, and seeking out the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a free title to your property before the purchase price is fully paid.

Escrow holders look for the following pieces of paperwork:

  • 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 finishing of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. 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, in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title inquiry
  • Meet lender's requirements as outlined in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse funds and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder stays a neutral, third-party status
  • Offer opinions about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Petition title search
  • Meet the bank's requirements as outlined in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • 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 finalize instructions
  • Tell you what's best - the escrow holder must stay at a fair, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.

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