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First-Time Home Buying: How To Close on a House

Sample Gold XSite can walk you through closing - 6621017322

Escrow
When you're closing on your new house, an escrow company is used to assure the transaction will close appropriately and in a timely manner. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. For example, in an Internet transaction, PayPal is the reliable third party that obtains the buyer's funds, and then hands over the payment to the seller.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's agreement are completed prior to the sale being finalized. This includes securing payments and paperwork, finishing required forms, and seeking out the release documents for any loans or liens that have been paid off with the transaction, assuring you have a clean title to your home before the asking price is fully paid.

These are the legal forms that escrow companies usually look to collect:

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

Upon finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then transferred to you as buyer and related title insurance is issued as outlined in the escrow instructions.

When closing is completely finished, you'll pay the fees to the escrow company. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Perform a title search Comply with the bank's standards as outlined in the escrow agreement Intake payments from the buyer Prorate interest, insurance, tax 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 are met Disburse monies and finalize instructions		Offer advice - the escrow agent stays at an impartial, third-party status Dispense opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay rolling expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about being in escrow. And, you can be a more informed home buyer and future homeowner.