Closing the Sale 

Escrow
To finish the sale of a house, a neutral, third party (the escrow agent) is employed to assure the transaction will close properly and on time. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. 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 agent makes sure that the terms and conditions of the agreement between the two parties are met in preparation of the sale being finished.

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Escrow agents compile the following forms: 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 Loan documents Tax statements

Upon completion of all instructions of the escrow, closing can take place. All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the home and the title insurance gets issued as noted in the escrow instructions.

The escrow agent gets a payment when the closing is complete. The escrow agent will let you know what is an acceptable form of payment.

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Perform a title research Meet the bank's standards as outlined in the escrow agreement Intake funds from the buyer Prorate insurance, tax, interest and other payments according to guidelines Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are met Disburse funds and finalize instructions		Give advice - the escrow holder has to remain an impartial, third-party status Offer opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for on-going fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about how to close on your future home.