First-Time Home Buying: How To Close on a Property

Escrow
To complete the sale of a place, a neutral, third party (the escrow holder) is engaged to assure the process will close properly and on time. A house is said to be in escrow when in the closing transaction, funds is held by a third party on behalf of two parties when the transaction is taking place. An easy way to understand the concept of what an escrow company does is to think of the use of PayPal for Internet purchases.

Settling the last details like taking in funds, finishing forms, obtaining the documents for loans and liens, and making sure you a spotless title to the property prior to your purchase gets finalized are all parts of closing in which an escrow holder is useful.

	Whether it's your first property or your next property, we'll walk you through the process. Call us at (702) 688-6373 and we'll give help you live in the house you want.

Escrow agents compile the following pieces of paperwork: 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. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. The home's title is given to you and title insurance is issued per the steps of your individual escrow process.

When closing is completely finished, you'll pay the fees to the escrow agent. I'll keep you up-to-date on the through the procedure.

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Petition title search Meet the bank's standards as written in the escrow agreement Accept payments from the buyer Prorate insurance, tax, interest and other payments according to guidelines Record deeds and other documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer have been met Disburse funds and finish instructions		Offer advice - the escrow holder must stay at a fair, third-party status Offer opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

This is a easy to understand guide about the escrow process. Your specific methods might be different based on your bank and your escrow holder.