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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
  • Whether it's your first place or your next place, I'll walk you through the process. Contact me.

    Escrow 101

     RE/Max Associates Northeast can walk you through closing - (281) 851-4438
    First, a little about "escrow". An escrow company is used to assure your home closes on time and the money exchanging part of closing goes smoothly. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. An easy way to understand the concept of what an escrow company does is to think of how you might use PayPal for Internet purchases.

    The escrow company makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being completed.

    The pieces of paperwork the escrow holder may secure include:

    Closing on the property takes place when the steps of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. The property's title goes to you and title insurance is issued per the steps of your particular escrow process.

    The escrow holder receives a payment at the completion of closing. As your real estate agent, I'll inform you of the acceptable way of paying.

    The Escrow Holder Will:

    • Assemble escrow guidelines
    • Perform a title inquiry
    • Meet lender's standards as specified in the escrow agreement
    • Accept funds from the buyer
    • Prorate interest, insurance, tax and other payments according to instructions
    • Record deeds and other legal documents as instructed
    • Request title insurance policy
    • Close escrow when all instructions of seller and buyer have been met
    • Disburse payments and finish instructions

    The Escrow Holder Will Not:

    • Offer advice - the escrow agent must maintain a neutral, third-party status
    • Dispense opinions about the outcome of your taxes
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Write escrow guidelines
    • Perform a title search
    • Comply with lender's standards as written in the escrow agreement
    • Receive payments from the buyer
    • Prorate interest, insurance, tax and other payments according to instructions
    • Record deeds and other documents as instructed
    • Request title insurance policy
    • Close escrow when all instructions of seller and buyer have been finished
    • Disburse funds and finalize instructions
    • Advise you - the escrow agent stays at an impartial, third-party status
    • Dispense opinions about future tax estimations

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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 plan might be slightly different based on your bank and your escrow holder.

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