Whether it's your first place or your next property, I'll walk you through the process. E-mail me at gmhambright@gmail.com .

First-Time Home Buying: Closing

 Mickey Hambright can walk you through closing - 828-817-1796
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is used to assure your place closes on time and the transaction goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. A simple way to think of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are met prior to the sale being finished.

These are the legal forms that escrow holders usually look for:

  • Title insurance policies
  • 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

Closing on the home happens when all of the procedures of the escrow are finished. 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 policies of your particular escrow process.

When closing is finished, you'll submit a payment to the escrow holder. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Petition title inquiry
  • Comply with lender's requirements as outlined in the escrow agreement
  • Accept payments 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 terms of agreement of seller and buyer are complete
  • Disburse funds and finalize instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Petition title search
  • Comply with the bank's requirements as specified in the escrow agreement
  • Intake funds from the buyer
  • Prorate insurance, tax, interest 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 complete
  • Disburse funds and finish instructions
  • Advise you - the escrow holder must maintain a neutral, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

This is a easy to understand guide about the escrow process. Your particular plan could be different based on your bank and your escrow holder.