Be Informed About the Escrow Process

Whether it's your first house or your next house, I'll help you through the process. E-mail me at george@lopezfinancialinc.com .

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Escrow: When you're closing on your new house, an escrow agent is used to make sure the process will close appropriately and on time. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a good example of an escrow company.

Tying up any loose ends like receiving funds, completing forms, getting the documents for loans and liens, and making sure you get a spotless title to the house in preparation of your purchase gets finalized are all part of the job of the escrow holder.

These are the documents that escrow holders usually look to collect:

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

Upon finishing of all instructions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then obtain the title to the house and the title insurance gets dispersed as stated in the escrow instructions.

The escrow agent receives a payment at the completion of closing. I'll keep you updated on the next steps.

The Escrow Holder Will:

Write escrow instructions
Perform a title inquiry
Comply with the bank's standards as outlined in the escrow agreement
Accept funds from the buyer
Prorate interest, insurance, tax 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 are met
Disburse funds and finish instructions

The Escrow Holder Won't:

Give advice - the escrow agent stays at an impartial, third-party status
Offer opinions about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Perform a title inquiry Comply with the bank's requirements as outlined in the escrow agreement Accept funds from the buyer Prorate tax, interest, insurance and other fees according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer have been finished Disburse monies and finalize instructions		Tell you what's best - the escrow holder must stay at a fair, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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.

This is a quick run-down of the escrow process. Your particular methods could be slightly different depending on your lender and your escrow company.