Understanding how Escrow works – Provident Realty Group, Dublin, CA

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Completing the Transaction

Provident Realty Group can walk you through closing - 9259999531

Escrow: When you're closing on your new property, an escrow agent is used to ensure the transaction will close properly and in a timely manner. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. An easy way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are completed in preparation of the sale being finished.

The certificates the escrow company may secure include:

Loan documents
Tax statements
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

Closing on the house takes place when the steps of the escrow are finished. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. You'll then secure the title to the house and the title insurance gets issued as outlined in the escrow instructions.

When closing is in it's last step, you'll submit a payment to the escrow holder. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Prepare escrow guidelines
Perform a title search
Meet lender's requirements as specified in the escrow agreement
Intake 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 terms of agreement of seller and buyer have been met
Disburse funds and finalize instructions

The Escrow Holder Won't:

Advise you - the escrow agent has to remain an impartial, third-party status
Offer opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Petition title research Meet lender's guidelines as noted in the escrow agreement Accept payments from the buyer Prorate insurance, tax, interest and other payments according to instructions 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 finalize instructions		Give advice - the escrow agent must stay at a fair, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for on-going fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

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

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