Whether it's your first home or your next property, We'll advise you through the process.
E-mail us at
bryan@gamblerealtyinc.com.
Closing the Sale in Odenton, Maryland
Let's talk about "escrow". When you're closing on your new home, an escrow company is used to ensure the transaction will close without problems and in a certain amount of time.
A home is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties when the exchange of money takes place.
An everyday 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 obtaining funds, completing forms, securing the documents for loans and liens, and assuring you get a clear title to the home in preparation of your purchase gets finalized are all part of the job of the escrow agent.
The certificates the escrow company may secure 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
You're ready to close when all steps are done in escrow process.
All expenses like title insurance, inspections and real estate commissions are paid.
You'll then secure the title to the house and the title insurance gets dispersed as noted in the escrow instructions.
The escrow holder gets a payment at the completion of closing.
As your real estate professionals, we'll let you know what is an acceptable way of paying.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Prepare escrow guidelines
- Perform a title search
- Comply with lender's guidelines as written in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse payments and finish instructions
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- Offer advice - the escrow holder must stay at a fair, third-party status
- Dispense opinions about tax implications
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Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the rules of the escrow process down, you can be a more assured buyer.