Purchasing real estate for the first time can be intimidating. I can help. E-mail me at jackshingler@aim.com .

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

 Coldwell Banker High Country Realty can walk you through closing - 828-835-8500
Escrow: When you're closing on your new place, an escrow agent is used to make sure the transaction will close without problems and in a timely manner. A house is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of a buyer and a seller when the transaction is taking place. A simple way to think of what an escrow company does is to think of how you might use PayPal for Internet purchases.

Settling the last details like receiving funds, completing forms, securing the documents for loans and liens, and assuring you get a clear title to the property before your purchase gets finalized are all parts of closing in which an escrow holder is useful.

These are the documents that escrow companies usually look for:

  • 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
  • Tax statements

Upon completion of all portions of the escrow, closing can take place. All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new homeowner and related title insurance is issued as outlined in the escrow instructions.

When closing is completely finished, you'll make a payment to the escrow company. As your real estate professional, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title search
  • Meet lender's guidelines as outlined in the escrow agreement
  • Receive funds from the buyer
  • Prorate interest, insurance, tax 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 are met
  • Disburse funds and finish instructions

The Escrow Holder Won't:

  • Advise you - the escrow company has to remain an impartial, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Request title inquiry
  • Meet the bank's guidelines as written in the escrow agreement
  • Intake payments from the buyer
  • Prorate interest, insurance, tax 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 are complete
  • Disburse monies and finish instructions
  • Give advice - the escrow agent must stay at a fair, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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.

Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question