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What To Expect When You're Closing in Rock Hill
Let's talk about "escrow". To finalize the sale of a house, a neutral, third party (the escrow company) is employed to assure the transaction will close properly and on time.
When money is held by a third party in a transaction between a buyer and a seller, it's in escrow.
A simple way to understand the concept of what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached in preparation of the sale being finalized.
The documents the escrow company may collect include:
- Terms of sale and any seller-assisted financing
- 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
Upon completion of all instructions of the escrow, closing can take place.
All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions).
You'll then secure the title to the property and the title insurance gets issued as outlined in the escrow instructions.
At the close of escrow, in an acceptable form to the escrow.
We'll keep you updated on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow guidelines
- Request title inquiry
- Comply with the bank's guidelines as outlined in the escrow agreement
- Accept payments 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 terms of agreement of seller and buyer have been finished
- Disburse payments and finish instructions
- Give advice - the escrow holder must stay at a fair, third-party status
- Give insight about tax implications
Mortgage Escrow Account
A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the 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.
Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.