Closing the Sale in Needham
The escrow agent makes sure that the terms and conditions of the agreement between the two parties are reached prior to the sale being completed.
These are the pieces of paperwork that escrow agents usually compile:
- 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 each step of the 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 correct title insurance is issued as noted in the escrow policy.
When closing is done, you'll make a payment to the escrow company. As your real estate agent, I'll inform you of the acceptable form of payment.
The Escrow Holder Will:
- Assemble escrow instructions
- Petition title research
- Comply with lender's standards as specified in the escrow agreement
- Intake payments from the buyer
- Prorate interest, insurance, tax and other payments according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse monies and finalize instructions
The Escrow Holder Won't:
- Tell you what's best - the escrow company stays a neutral, third-party status
- Offer opinions about tax implications
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
A Mortgage Escrow Account is used to pay on-going fees while there is a loan on the 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.
This is a easy to understand guide about the escrow process. Your specific plan may be slightly different depending on your bank and your escrow holder.