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

Whether it's your first house or your next house, I'll advise you through the process. Call me at 9259999531 and I'll give all the info you'll need to move forward.

What is Escrow?

Provident Realty Group can walk you through closing - 9259999531

Let's talk about "escrow". An escrow agent is brought on to assure your home closes on time and the transaction goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an online transaction, PayPal is the reliable third party that obtains the buyer's cash, and then disburses the payment to the seller.

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

These are the legal documents that escrow holders usually look to collect:

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 all parts are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as new owner 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
Perform a title research
Meet the bank's standards as noted in the escrow agreement
Intake funds from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other legal documents as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer are met
Disburse payments and finish instructions

The Escrow Holder Will Not:

Tell you what's best - the escrow agent must stay at a fair, third-party status
Dispense opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Perform a title inquiry Comply with lender's requirements as written in the escrow agreement Intake funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse funds and finalize instructions		Tell you what's best - the escrow agent stays a neutral, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay rolling fees while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.

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