What To Expect When You're Closing in Palm Beach Gardens
Let's talk about "escrow". When you're closing on your new house, an escrow company is used to ensure the process will close correctly and in a timely manner. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. An easy way to understand the concept of what an escrow company does is to compare it to PayPal for Internet purchases.
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 securing payments and paperwork, finishing required forms, and getting the release documents for any loans or liens that have been cleared with the transaction, assuring you have a clean title to your home before the asking price is fully paid.
Escrow agents compile the following legal documents:
- 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
- Loan documents
You're ready to close when all steps are finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then transferred to you as new owner and related title insurance is issued as noted in the escrow instructions.
When closing is completely finished, you'll make a payment to the escrow holder. I'll keep you informed on what comes next.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Petition title research
- Meet the bank's standards as outlined in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- 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
- Tell you what's best - the escrow company has to remain an impartial, 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. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you're comfortable with the escrow process, you can be a informed buyer.