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  • 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
  • Don't let real estate industry jargon scare you from becoming a homeowner. I can help you work your way through the process. Contact me and I'll make sure you're a confident buyer.

    First-Time Home Buying: How To Close on a Property

     John-Mark Mitchell's Realty Group can walk you through closing - (336) 722-9911
    Escrow: To complete the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close correctly and on 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 an online auction, PayPal is the reliable third party that holds the buyer's money, and then disburses the money to the seller.

    The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finished. This includes receiving payments and records, filling out required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a clear title to your house before the agreed upon price is fully paid.

    The certificates the escrow company may obtain include:

    Upon completion of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. The house's title goes to you and title insurance begins per the steps of your particular escrow agreement.

    When closing is in it's last step, you'll make a payment to the escrow agent. As your real estate agent, I'll inform you of the acceptable way of paying.

    The Escrow Holder Will:

    • Assemble escrow guidelines
    • Request title search
    • Meet lender's requirements as outlined in the escrow agreement
    • Receive payments from the buyer
    • Prorate insurance, tax, interest and other payments according to instructions
    • Record deeds and other documents as instructed
    • Obtain title insurance policy
    • Close escrow when all terms of agreement of seller and buyer are met
    • Disburse funds and finish instructions

    The Escrow Holder Will Not:

    • Give advice - the escrow agent must maintain a neutral, third-party status
    • Offer opinions about tax implications
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Prepare escrow guidelines
    • Perform a title inquiry
    • Meet the bank's standards as outlined in the escrow agreement
    • Receive funds from the buyer
    • Prorate interest, insurance, tax and other payments according to instructions
    • Record deeds and other documents as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are complete
    • Disburse payments and finish instructions
    • Advise you - the escrow company stays at an impartial, third-party status
    • Offer opinions about tax implications

    Mortgage Escrow Account

    A Mortgage Escrow Account is used to make payments for recurring expenses 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 better informed home buyer and future homeowner.