Don't let real estate industry jargon keep you from becoming a homeowner. I can help you understand the process. Contact me.

What To Expect When You're Closing in Winston-Salem

 John-Mark Mitchell's Realty Group can walk you through closing - (336) 722-9911
Let's talk about "escrow". When you're closing on your new home, an escrow agent is used to guarantee the transaction will close without problems and in a certain amount of time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in a Web purchase, PayPal is the neutral third party that obtains the buyer's cash, and then sends the money to the seller.

Tying up any loose ends like receiving funds, finishing forms, securing the documents for loans and liens, and making sure you get a clear title to the home before your purchase gets finalized are all parts of closing in which an escrow agent is useful.

Escrow agents look for the following documents:

  • 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
  • Terms of sale and any seller-assisted financing

Closing on the property takes place when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. The home's title is given to you and title insurance is issued per the steps of your particular escrow process.

The escrow company gets a payment when the closing is complete. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title research
  • Comply with the bank's requirements as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments 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 finalize instructions

The Escrow Holder Won't:

  • Advise you - the escrow holder must stay at a fair, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow instructions
  • Petition title research
  • Comply with lender's guidelines as specified in the escrow agreement
  • Receive funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents 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 company must stay at a fair, third-party status
  • Dispense opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay rolling fees while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Once you have the rules of the escrow process down, you can be a better buyer.