Whether it's your first property or your next place, I'll educate you through the process. E-mail me at craig@serenogroup.com to get some free information.

The House is Almost Yours

 Craig Jelinek - Sereno Group can walk you through closing - 408-335-1425
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is used to assure your home closes on time and the process goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. A simple way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finished. This includes securing funds and records, completing required forms, and seeking out the release documents for any loans or liens that were paid with the transaction, assuring you have a free title to your property before the agreed upon price is fully paid.

Escrow companies want to acquire the following legal documents:

  • 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

Closing on the property happens when all of the procedures of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. Title to the home is then transferred to you as new homeowner and related title insurance is issued as noted in the escrow instructions.

When closing is completed, you'll submit a payment to the escrow agent. As your real estate professional, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

  • Write escrow instructions
  • Perform a title inquiry
  • Comply with lender's guidelines as specified in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse funds and finalize instructions

The Escrow Holder Will Not:

  • Offer advice - the escrow holder stays at an impartial, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title research
  • Meet the bank's standards as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments 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 are met
  • Disburse funds and finish instructions
  • Give advice - the escrow holder must stay at a fair, third-party status
  • Offer 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.

This is a simple outline of the escrow process. Your individual methods could be unique depending on your bank and your escrow agent.

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