Don't let real estate industry jargon scare you from becoming a homeowner. I can help you become knowledgeable about the process. Contact me and I'll help you become a well-informed buyer.

Buying Your Next House: Closing

 John-Mark Mitchell's Realty Group can walk you through closing - (336) 722-9911
First, a little about "escrow". To finalize the sale of a house, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close correctly and on time. A home is said to be in escrow when in the closing process, money is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. PayPal is a good example of an escrow company.

The escrow holder makes sure that the terms and conditions of the agreement between the two parties are met prior to the sale being completed.

Escrow companies want to acquire the following pieces of paperwork:

  • 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

You're ready to close when every step is finished in escrow process. All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.

The escrow company gets a payment when the closing is complete. I'll keep you up-to-date on what comes next.

The Escrow Holder Will:

  • Prepare escrow guidelines
  • Request title research
  • Comply with the bank's standards as written in the escrow agreement
  • Accept payments from the buyer
  • Prorate interest, insurance, tax and other payments 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 funds and finish instructions

The Escrow Holder Won't:

  • Tell you what's best - the escrow agent must stay at a fair, third-party status
  • Offer opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Request title inquiry
  • Comply with the bank's requirements as written in the escrow agreement
  • Receive funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • 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 monies and finish instructions
  • Give advice - the escrow agent has to remain an impartial, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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 being in escrow. And, you can be a smarter home buyer and future homeowner.