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Closing the Sale in Harris County
Let's talk about "escrow". When you're closing on your new house, an escrow holder is used to ensure 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 online transaction, PayPal is the reliable third party that obtains the buyer's payment,
and then sends the payment to the seller.
Settling the last details like receiving funds, signing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the home in preparation of your purchase gets finalized are all parts of closing in which an escrow holder is useful.
These are the records that escrow companies usually look for:
- 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
You're ready to close when all parts are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The house's title goes to you and title insurance is issued per the steps of your individual escrow process.
The escrow company receives a payment at the completion of closing. I'll keep you informed on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Perform a title inquiry
- Comply with lender's requirements as noted in the escrow agreement
- Receive funds 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 are met
- Disburse monies and finish instructions
- Tell you what's best - the escrow holder must maintain a neutral, third-party status
- Give insight about tax implications
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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 easy to understand guide about the escrow process. Your particular methods could vary depending on your bank and your escrow company.