Don't let the unknown prevent you from becoming a homeowner. I can help you become knowledgeable about the process. E-mail me at craig@serenogroup.com .

Steps to Closing on a Home

 Craig Jelinek - Sereno Group can walk you through closing - 408-335-1425
Escrow: When you're closing on your new house, a neutral, third party (known as the escrow holder or the escrow agent) is used to ensure the process will close appropriately and on time. A place is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of two parties when the exchange of money takes place. An easy way to understand what an escrow company does is to compare it to PayPal for Internet purchases.

Settling the last details like receiving funds, completing forms, obtaining the documents for loans and liens, and assuring you get a clear title to the property in preparation of your purchase gets finalized are all part of the job of the escrow company.

The records the escrow agent may obtain include:

  • 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

You're ready to close when every step is done in escrow process. All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then secure the title to the home and the title insurance gets issued as outlined in the escrow instructions.

At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you updated on the procedure.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Perform a title search
  • Meet lender's standards as noted in the escrow agreement
  • Intake funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse funds and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow company must stay at a fair, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Request title search
  • Meet the bank's requirements as outlined in the escrow agreement
  • Intake funds 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 have been met
  • Disburse monies and finish instructions
  • Offer advice - the escrow holder stays a neutral, third-party status
  • Give insight about tax implications

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 quick run-down of the escrow process. Your particular methods might be slightly different depending on your lender and your escrow holder.

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