The process of buying real estate for the first time can be overwhelming. I can help. Call me at (617) 799-3326.

First-Time Home Buying: How To Close on a House

 Louis Wolfson & Co. can walk you through closing - (617) 799-3326
First, a little about "escrow". When you're closing on your new home, an escrow company is used to make sure the process will close without problems and on time. A place is said to be in escrow when in the closing process, money is held by a third party on behalf of a buyer and a seller when the transaction is taking place. An everyday way to think of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow company makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being finished.

These are the records that escrow companies usually look to collect:

  • 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 takes place when all of the procedures of the escrow are finished. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then given to you as now current homeowner and related title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate professional, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Perform a title research
  • Comply with lender's standards as outlined in the escrow agreement
  • Intake funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finish instructions

The Escrow Holder Won't:

  • Offer advice - the escrow holder must maintain a neutral, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Perform a title search
  • Comply with the bank's standards as written in the escrow agreement
  • Receive funds from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse funds and finish instructions
  • Give advice - the escrow holder must stay at a fair, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

This is a simple outline of the escrow process. Your particular plan might be different depending on your lender and your escrow company.

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Louis Wolfson & Co.

29 Cimino Road
Needham, MA 02494