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

Whether it's your first property or your next property, I'll educate you through the process. Contact me.

Closing the Sale in Dublin

Provident Realty Group can walk you through closing - 9259999531

Let's talk about "escrow". To close the sale of a place, a neutral, third party (the escrow agent) is brought into the picture to assure the transaction will close appropriately and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. An easy way to think of what an escrow company does is to think of the use of PayPal for Internet purchases.

The escrow agent makes sure that the terms and conditions of the agreement between the seller and buyer are reached in preparation of the sale being finalized.

Escrow agents want to obtain the following records:

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

You're ready to close when every step is finished in escrow process. All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title goes to you and title insurance begins per the policies of your individual escrow agreement.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

Assemble escrow guidelines
Petition title search
Meet lender's guidelines as specified in the escrow agreement
Accept funds from the buyer
Prorate interest, insurance, tax and other payments according to guidelines
Record deeds and other documents as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer have been met
Disburse monies and finalize instructions

The Escrow Holder Won't:

Offer advice - the escrow company stays at an impartial, third-party status
Offer opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Petition title inquiry Comply with lender's guidelines as outlined in the escrow agreement Accept funds from the buyer Prorate insurance, tax, interest and other payments according to guidelines Record deeds and other documents as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse monies and finish instructions		Give advice - the escrow holder must stay at a fair, third-party status Offer opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling fees while there is a loan on the 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 how to close on your future home. And, you can be a more confident home buyer and future homeowner.

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