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

Whether it's your first house or your next home, I'll educate you through the process. E-mail me at robert@providentrealtygroup.com .

Completing the Transaction

Provident Realty Group can walk you through closing - 9259999531

Escrow: When you're closing on your new property, a neutral, third party (known as the escrow holder or the escrow agent) is used to ensure the transaction will close without problems and on time. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. For example, in an Internet purchase, PayPal is the neutral third party that obtains the buyer's money, and then sends the money to the seller.

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

The pieces of paperwork the escrow holder may obtain include:

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
Loan documents

Closing on the home happens when all of the procedures of the escrow are complete. All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title is given to you and title insurance is issued per the policies of your particular escrow process.

The escrow company receives a payment at the completion of closing. I'll keep you up-to-date on the procedure.

The Escrow Holder Will:

Assemble escrow instructions
Request title research
Meet lender's guidelines as noted in the escrow agreement
Receive payments from the buyer
Prorate tax, interest, insurance and other fees according to guidelines
Record deeds and other documents as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer are met
Disburse payments and finalize instructions

The Escrow Holder Won't:

Advise you - the escrow agent stays at an impartial, third-party status
Dispense opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Perform a title search Comply with lender's requirements as outlined in the escrow agreement Accept funds from the buyer Prorate tax, interest, insurance and other fees 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 payments and finish instructions		Offer advice - the escrow agent stays at an impartial, third-party status Dispense opinions 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. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

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

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