Buying Your Next Property: Closing

Escrow: An escrow agent is used to assure your property closes on time and the money exchanging part of closing goes smoothly. When funds are 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 online purchases.

Settling the last details like receiving funds, signing forms, obtaining the documents for loans and liens, and assuring you get a clear title to the home before your purchase gets finalized are all parts of closing in which an escrow company is useful.

Closing on the property takes place when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. The home's title is given to you and title insurance is issued per the steps of your individual escrow process.

The escrow holder gets a payment at the completion of closing. As your agent, I'll inform you of the acceptable form of payment.

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay rolling expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

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