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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
  • Buying real estate for the first time can be confusing. I can help. E-mail me at tim@selectivehomesinc.com .

    Escrow 101

     Selective Homes Inc. can walk you through closing - 252-321-9784
    First, a little about "escrow". To close the sale of a property, a neutral, third party (the escrow holder) is engaged to assure the process will close properly and on time. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet transaction, PayPal is the secure third party that obtains the buyer's funds, and then disburses the money to the seller.

    The escrow agent makes sure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being finalized. This includes securing payments and records, signing required forms, and seeking out the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a free title to your home before the final price is fully paid.

    Escrow agents collect the following forms:

    Closing on the house takes place when the steps of the escrow are complete. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. You'll then get the title to the home and the title insurance gets dispersed as outlined in the escrow instructions.

    When closing is done, you'll pay the fees to the escrow holder. I'll keep you up-to-date on the next steps.

    The Escrow Holder Will:

    • Prepare escrow guidelines
    • Request title search
    • Meet lender's requirements as noted in the escrow agreement
    • Receive payments from the buyer
    • Prorate interest, insurance, tax and other payments according to guidelines
    • Record deeds and other paperwork as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are complete
    • Disburse monies and finish instructions

    The Escrow Holder Will Not:

    • Tell you what's best - the escrow company must maintain a neutral, third-party status
    • Dispense opinions about future tax estimations
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Write escrow guidelines
    • Perform a title research
    • Comply with lender's guidelines as specified in the escrow agreement
    • Accept funds from the buyer
    • Prorate insurance, tax, interest 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 finalize instructions
    • Offer advice - the escrow company has to remain an impartial, third-party status
    • Dispense opinions about the outcome of your taxes

    Mortgage Escrow Account

    Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

    This is a easy to understand guide about the escrow process. Your individual process will be different depending on your lender and your escrow holder.

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