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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 inexperience with the real estate industry scare you from becoming a homeowner. I can help you become knowledgeable about the process. Call me at 408-262-4321.

    What is Escrow?

     Selective Realty Inc. can walk you through closing - 408-262-4321
    Escrow: When you're closing on your new place, an escrow company is used to insure the transaction will close properly and in a timely manner. A house is said to be in escrow when in the closing process, funds is held by a third party on behalf of two parties when the transaction is taking place. PayPal is a good example of an escrow company.

    The escrow agent insures that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being finished. This includes securing monies and records, completing required forms, and obtaining the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clear title to your home before the final price is fully paid.

    These are the records that escrow companies usually look for:

    You're ready to close when all steps are done in escrow process. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then given to you as now current homeowner and appropriate title insurance is issued as noted in the escrow instructions.

    At the close of escrow, payments are submitted in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

    The Escrow Holder Will:

    • Write escrow guidelines
    • Perform a title search
    • Comply with lender's requirements as written in the escrow agreement
    • Intake funds from the buyer
    • Prorate insurance, tax, interest and other payments according to instructions
    • Record deeds and other paperwork as instructed
    • Request title insurance policy
    • Close escrow when all instructions of seller and buyer have been finished
    • Disburse monies and finish instructions

    The Escrow Holder Will Not:

    • Advise you - the escrow company stays at an impartial, third-party status
    • Give insight about tax implications
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Prepare escrow instructions
    • Perform a title research
    • Comply with the bank's guidelines as outlined in the escrow agreement
    • Receive funds from the buyer
    • Prorate tax, interest, insurance and other fees according to instructions
    • Record deeds and other legal documents as instructed
    • Obtain title insurance policy
    • Close escrow when all terms of agreement of seller and buyer have been finished
    • Disburse payments and finalize instructions
    • Advise you - the escrow holder stays at an impartial, 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. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

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

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