Using an Escrow Agent
Escrow
An escrow agent is brought on to assure your house closes on time and the money exchanging part of closing goes smoothly. A home is said to be in escrow when in the closing transaction, funds is held by a third party on behalf of two parties when the exchange of money takes place. For example, in an online purchase, PayPal is the reliable third party that obtains the buyer's payment, and then sends the money to the seller.
Clearing the final hurdles like taking in funds, signing forms, getting the documents for loans and liens, and making sure you a clear title to the home prior to your purchase gets finalized are all parts of closing in which an escrow agent is useful. Check out our guide to the Life of an Escrow
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Buying a property for the first time can be confusing. Let us help you. Contact us. |
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The documents the escrow holder may secure 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
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You're ready to close when each step of the finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. Title to the property is then given to you as new owner and correct title insurance is issued as outlined in the escrow policy.
The escrow agent receives a payment when the closing is complete. As your real estate agent, I'll let you know what is an acceptable way of paying.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Assemble escrow guidelines
- Petition title inquiry
- Meet the bank's standards as outlined in the escrow agreement
- Receive payments from the buyer
- Prorate interest, insurance, tax 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 finish instructions
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- Tell you what's best - the escrow company stays at an impartial, third-party status
- Offer opinions about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is established to make payments for recurring expenses while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Once you're comfortable with the escrow process, you can be a more assured buyer. | 
