Don't let the unknown scare you from becoming a homeowner. I can help you understand the process. E-mail me at mathomas03@yahoo.com .

Steps to Closing on a House

 Thomas-Chambers Company<br>BRE # 01208644 can walk you through closing - 5106010116
Let's talk about "escrow". When you're closing on your new property, an escrow agent is used to assure the transaction will close properly and in a certain amount of time. A house is said to be in escrow when in the closing process, money is held by a third party on behalf of a buyer and a seller when the transaction is taking place. An easy way to understand the concept of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being completed. This includes receiving monies and documents, completing required forms, and seeking out the release documents for any loans or liens that have been cleared with the transaction, assuring you have a clean title to your place before the negotiated price is fully paid.

The certificates the escrow holder may collect include:

  • 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

You're ready to close when all steps are finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then get the title to the house and the title insurance gets issued as outlined in the escrow instructions.

When closing is finished, you'll make a payment to the escrow holder. As your REALTOR, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Request title inquiry
  • Comply with the bank's requirements as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents 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:

  • Give advice - the escrow agent must maintain a neutral, third-party status
  • Give insight about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Perform a title research
  • Meet the bank's standards as written 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 terms of agreement of seller and buyer are complete
  • Disburse monies and finalize instructions
  • Give advice - the escrow agent stays a neutral, third-party status
  • Dispense 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.

Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.

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Thomas-Chambers Company
BRE # 01208644

449 W MacArthur Blvd.
Oakland, CA 94609