Be Informed About the Escrow Process

Whether it's your first place or your next house, I'll walk you through the process. Call me at (615)226-9900 and I'll give help you buy the place you want.

First-Time Home Buying: Closing

Beck & Beck Realty, Inc can walk you through closing - (615)226-9900

First, a little about "escrow". An escrow agent is brought on to assure your place closes on time and the money exchanging part of closing goes smoothly. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a simple way to think of an escrow company.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are completed in preparation of the sale being finished.

The certificates the escrow holder may collect include:

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

Upon completion of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. You'll then obtain the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.

At the close of escrow, fees are paid in an acceptable form to the escrow. I'll keep you informed on the next steps.

The Escrow Holder Will:

Prepare escrow guidelines
Petition title research
Meet lender's requirements as specified in the escrow agreement
Accept funds from the buyer
Prorate tax, interest, insurance and other fees 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 monies and finalize instructions

The Escrow Holder Will Not:

Offer advice - the escrow holder has to remain an impartial, third-party status
Give insight about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Perform a title research Meet the bank's standards as written in the escrow agreement Accept payments 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 are met Disburse funds and finish instructions		Give advice - the escrow holder must stay at a fair, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're at ease with the escrow process, you can be a more assured buyer.