How Escrow Works

Buying Your Next Place: Closing

 Premier Group Realty West can walk you through closing - 2084525655

Escrow
When you're closing on your new home, an escrow holder is used to make sure the transaction will close properly and in a specific time frame. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. An easy way to understand the concept of what an escrow company does is to think of how you might use PayPal for Internet purchases.

Clearing the final hurdles like taking in funds, completing forms, obtaining the documents for loans and liens, and making sure you a spotless title to the property before your purchase gets finalized are all part of the job of the escrow holder.

 

Whether it's your first home or your next house, we'll advise you through the process. Contact us.

Escrow holders want to obtain the following records:

  • 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
  • Fire and other insurance policies
  • Title insurance policies

Closing on the property takes place when all of the procedures of the escrow are done. All payments owed and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title goes to to you and title insurance begins per the policies of your individual escrow agreement.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

 

The Escrow Holder Won't:

  • Assemble escrow guidelines
  • Petition title search
  • Meet the bank's standards as noted in the escrow agreement
  • Receive funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork 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
 
  • Tell you what's best - the escrow company must maintain a neutral, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay on-going fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

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

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Premier Group Realty West
Fruitland, ID 83619
208-452-5655
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Premier Group Realty West | 208-452-5655 | Email Us
804 NW 24th St. Ste. B - Fruitland, ID 83619
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