What to Expect When You're in Escrow

Whether it's your first house or your next home, I'll walk you through the process. Contact me.

Steps to Closing on a Property

Louis Wolfson & Co. can walk you through closing - (617) 799-3326

First, a little about "escrow". An escrow holder is used to assure your house closes on time and the transaction goes smoothly. 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 exchange of money takes place. PayPal is a good way to picture an escrow company.

The escrow holder makes sure that the terms and conditions of the agreement between the two parties are completed prior to the sale being finalized.

Escrow agents want to acquire the following legal documents:

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
Terms of sale and any seller-assisted financing

You're ready to close when all parts are finished in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. You'll then obtain the title to the home and the title insurance gets dispersed as stated in the escrow instructions.

When closing is done, you'll make a payment to the escrow company. I'll keep you updated on the next steps.

The Escrow Holder Will:

Prepare escrow instructions
Petition title research
Meet the bank'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 paperwork as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer are met
Disburse payments and finalize instructions

The Escrow Holder Will Not:

Advise you - the escrow holder stays a neutral, third-party status
Offer opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Request title search Meet the bank's guidelines as outlined in the escrow agreement Accept funds from the buyer Prorate interest, insurance, tax and other payments 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 met Disburse monies and finalize instructions		Give advice - the escrow company stays at an impartial, third-party status Give insight about tax implications

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Once you're comfortable with the escrow process, you can be a better buyer.

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