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Buying Your Next Property: Closing

 Louis Wolfson & Co. can walk you through closing - (617) 799-3326
Escrow: An escrow agent is used to assure your property closes on time and the money exchanging part of closing goes smoothly. A place is said to be in escrow when in the closing transaction, money is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. For example, in an Internet purchase, PayPal is the reliable third party that obtains the buyer's cash, and then sends the money to the seller.

The escrow agent insures that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being completed. This includes receiving funds and documents, filling out required forms, and seeking out the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a clear title to your house before the final price is fully paid.

These are the records that escrow companies usually look for:

  • 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

Upon finishing of all instructions of the escrow, closing can take place. All payments owed and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title goes to you and title insurance is issued per the steps of your individual escrow agreement.

The escrow agent gets a payment when the closing is complete. I'll keep you up-to-date on the procedure.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title search
  • Comply with lender's standards as written in the escrow agreement
  • Intake payments 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 finished
  • Disburse payments and finalize instructions

The Escrow Holder Will Not:

  • Advise you - the escrow company has to remain an impartial, third-party status
  • Offer opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow instructions
  • Perform a title search
  • Meet the bank's guidelines as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax 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
  • Give advice - the escrow holder must maintain a neutral, third-party status
  • Give insight about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

This is a easy to understand guide about the escrow process. Your specific methods will be unique based on your lender and your escrow company.

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Louis Wolfson & Co.

29 Cimino Road
Needham, MA 02494