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  • 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
  • Don't let real estate industry jargon prevent you from becoming a homeowner. I can help you become knowledgeable about the process. Call me at 609.822.8700.

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

     Matthew Vassallo Real Estate can walk you through closing - 609.822.8700
    First, a little about "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 make sure the transaction will close without problems and in a certain amount of time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. An everyday way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

    Settling the last details like taking in funds, completing forms, securing the documents for loans and liens, and making sure you get a clean title to the home in preparation of your purchase gets finalized are all part of the job of the escrow company.

    These are the documents that escrow agents usually look for:

    Closing on the property happens when all of the procedures of the escrow are complete. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. You'll then get the title to the property and the title insurance gets issued as noted in the escrow instructions.

    The escrow holder receives a payment when the closing is complete. I'll keep you informed on the next steps.

    The Escrow Holder Will:

    • Assemble escrow guidelines
    • Perform a title search
    • Comply with the bank's standards as specified in the escrow agreement
    • Intake payments from the buyer
    • Prorate tax, interest, insurance and other fees according to guidelines
    • Record deeds and other paperwork as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer have been finished
    • Disburse payments and finalize instructions

    The Escrow Holder Will Not:

    • Give advice - the escrow holder stays a neutral, third-party status
    • Give insight about future tax estimations
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Prepare escrow guidelines
    • Petition title inquiry
    • Comply with lender's standards as written in the escrow agreement
    • Intake payments from the buyer
    • Prorate insurance, tax, interest and other payments according to instructions
    • 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 payments and finalize instructions
    • Give advice - the escrow company must stay at a fair, third-party status
    • Offer opinions 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.

    Once you have the rules of the escrow process down, you can be a confident buyer.

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