Escrow 101

 Jeanie Elliott Inc. REALTORS, ABR, ALHS, CHMS, SRES, SFR, BPOR, M.S. BUSINESS can walk you through closing - 972-612-2277  (Direct)

Escrow
When you're closing on your new home, an escrow company is used to make certain the transaction will close appropriately 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 think of the use of PayPal for online purchases.

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

Whether it's your first place or your next home, I'll educate you through the process. Call me at 972-612-2277 (Direct).

Escrow holders want to obtain the following legal documents:

  • Loan documents
  • 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

You're ready to close when every step is finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The home's title goes to you and title insurance begins per the steps of your particular escrow process.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. I'll keep you updated on the next steps.

The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Request title search
  • Comply with lender's guidelines as specified in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finish instructions
  • Offer advice - the escrow agent has to remain an impartial, third-party status
  • Dispense opinions about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the basics of the escrow process down, you can be a more assured buyer.

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