Rules for Using an Escrow Company

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First-Time Home Buying: Closing

Nantahala Real Estate Company, INC can walk you through closing - 8283213101

Let's talk about "escrow". When you're closing on your new property, an escrow company is used to ensure the transaction will close appropriately and in a specific time frame. A property is said to be in escrow when in the closing process, money is held by a third party on behalf of two parties when the exchange of money takes place. An easy way to think of what an escrow company does is to compare it to PayPal for online purchases.

The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are met prior to the sale being completed.

Escrow companies look for the following legal documents:

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. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the property and the title insurance gets dispersed as noted in the escrow instructions.

The escrow holder gets a payment at the completion of closing. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Write escrow instructions
Request title research
Meet the bank's standards as noted in the escrow agreement
Receive funds from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other legal documents as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer have been finished
Disburse monies and finish instructions

The Escrow Holder Won't:

Give advice - the escrow holder must stay at a fair, third-party status
Offer opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Petition title inquiry Meet lender's requirements as outlined in the escrow agreement Intake funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other documents as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer are met Disburse monies and finish instructions		Tell you what's best - the escrow company has to remain an impartial, third-party status Give insight about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're comfortable with the escrow process, you can be a confident buyer.

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