Don't let real estate industry jargon prevent 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.

Steps to Closing on a Home

 Mickey Hambright can walk you through closing - 828-817-1796
Let's talk about "escrow". When you're closing on your new property, an escrow agent is used to guarantee the process will close properly and in a timely manner. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a good example of an escrow company.

The escrow holder insures that all terms and conditions of the seller's and buyer's contract are met prior to the sale being completed. This includes getting monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clear title to your house before the purchase price is fully paid.

These are the pieces of paperwork that escrow holders usually compile:

  • 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 done in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. Title to the property is then transferred to you as new homeowner and related title insurance is issued as noted in the escrow policy.

When closing is done, you'll submit a payment to the escrow agent. As your real estate professional, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

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

The Escrow Holder Won't:

  • Tell you what's best - the escrow company must stay at a fair, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Request title inquiry
  • Meet the bank's requirements as outlined in the escrow agreement
  • Intake funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finish instructions
  • Offer advice - the escrow holder must maintain a neutral, third-party status
  • Give insight 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. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.