What To Expect When You're Closing in Edmond, Oklahoma
Escrow: An escrow holder is brought on to assure your house closes on time and the process goes smoothly.
When money is held by a third party in a transaction between a buyer and a seller, it's in escrow.
For example, in a Web purchase, PayPal is the neutral third party that holds the buyer's cash, and then hands over the funds to the seller.
The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being finished. This includes receiving monies and paperwork, completing required forms, and getting the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clear title to your home before the purchase price is fully paid.
The records the escrow agent 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 expenses like title insurance, inspections and real estate commissions are paid.
Title to the house is then transferred to you as new homeowner and related title insurance is issued as outlined in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow.
I'll keep you updated on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Petition title research
- Meet lender's guidelines as specified in the escrow agreement
- Accept funds from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- Record deeds and other legal documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse funds and finish instructions
- Offer advice - the escrow company has to remain an impartial, third-party status
- Give insight about the outcome of your taxes
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
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 smarter home buyer and future homeowner.