Don't let the unknown keep you from becoming a homeowner. I can help you become knowledgeable about the process. E-mail me at denise@denisewhitehead.com to get some free information.

Steps to Closing on a Home

 Berkshire Hathaway HomeServices - Anderson Properties can walk you through closing - (405) 823-4928
First, a little about "escrow". To complete the sale of a property, a neutral, third party (the escrow company) is engaged to assure the transaction will close correctly and on time. When payment is 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 compare it to PayPal for Internet purchases.

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

Escrow companies want to obtain the following forms:

  • 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

Closing on the house takes place when the steps of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then given to you as new owner and correct title insurance is issued as noted in the escrow instructions.

The escrow company gets a payment at the completion of closing. I'll keep you up-to-date on the procedure.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Petition title inquiry
  • Meet lender's guidelines as noted in the escrow agreement
  • Intake funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Advise you - the escrow holder has to remain an impartial, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Request title inquiry
  • Meet lender's requirements as outlined in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse funds and finalize instructions
  • Tell you what's best - the escrow company has to remain an impartial, third-party status
  • Dispense 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. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Once you're familiar with the escrow process, you can be a informed buyer.

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