Things to Expect When You're in Escrow

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What To Expect When You're Closing in Fort Myers

Absolute Equity Realty Group LLC can walk you through closing - 2394549300

First, a little about "escrow". To finalize the sale of a home, a neutral, third party (the escrow company) is engaged to assure the process will close appropriately and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet auction, PayPal is the secure third party that holds the buyer's funds, and then hands over the payment to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being finalized.

The records the escrow holder may secure include:

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
Loan documents

You're ready to close when every step is done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as new homeowner and correct title insurance is issued as outlined in the escrow policy.

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

The Escrow Holder Will:

Prepare escrow guidelines
Request title search
Comply with the bank's guidelines as outlined in the escrow agreement
Intake payments from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other paperwork as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer have been finished
Disburse monies and finalize instructions

The Escrow Holder Will Not:

Offer advice - the escrow holder must stay at a fair, third-party status
Offer opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Request title inquiry Comply with the bank's guidelines as noted in the escrow agreement Intake funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other documents as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer have been finished Disburse funds and finalize instructions		Give advice - the escrow holder stays a neutral, third-party status Dispense opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for 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.

This is a simple outline of the escrow process. Your individual process could be unique based on your bank and your escrow company.

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