Closing the Sale in Harris County

Escrow
When you're closing on your new place, an escrow agent is used to assure the transaction will close properly and in a certain amount of time. A place is said to be in escrow when in the closing process, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. An everyday way to understand what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being completed. This includes receiving monies and records, finishing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a unobstructed title to your house before the agreed upon price is fully paid.

	Don't let real estate industry jargon scare you from becoming a homeowner. We can help you understand the process. Call us at (713) 524-2292.

Escrow companies compile the following forms: 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 Terms of sale and any seller-assisted financing

Closing on the property takes place when the steps of the escrow are complete. All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then given to you as new homeowner and related title insurance is issued as noted in the escrow instructions.

The escrow company gets a payment when the closing is complete. As your real estate agent, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Perform a title research Comply with lender's requirements as specified in the escrow agreement Intake payments from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been met Disburse funds and finish instructions		Advise you - the escrow agent has to remain an impartial, third-party status Give insight about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for 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.

Once you're at ease with the escrow process, you can be a more assured buyer.