Buying a house for the first time can be confusing. Let me help you. Call me at (804) 694-3113 and I'll give you more information.

Steps to Closing on a Property

 Southern Trade Realty, Inc. can walk you through closing - (804) 694-3113
First, a little about "escrow". An escrow company is hired to assure your home closes on time and the transaction goes smoothly. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. For example, in a Web auction, PayPal is the reliable third party that holds the buyer's money, and then sends the funds to the seller.

The escrow agent insures that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finished. This includes getting payments and certificates, completing required forms, and seeking out the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your place before the negotiated price is fully paid.

These are the records that escrow holders usually look to collect:

  • 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 home takes place when the steps of the escrow are done. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets transferred to you and title insurance begins per the steps of your individual escrow agreement.

When closing is finished, you'll pay the fees to the escrow holder. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Petition title research
  • Meet lender's standards as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • 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 funds and finalize instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow agent must maintain a neutral, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Perform a title research
  • Comply with the bank's requirements 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 paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse monies and finish instructions
  • Give advice - the escrow company must stay at a fair, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going fees 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 being in escrow. And, you can be a more confident home buyer and future homeowner.

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