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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
  • Purchasing real estate for the first time can be intimidating. Let me help you. E-mail me at mcouto@mcoutorealtor.com to get some free information.

    Escrow 101

     Rosa Agency can walk you through closing - (201) 997-7860 x16
    Let's talk about "escrow". An escrow holder is brought on to assure your place closes on time and the closing process goes smoothly. Escrow companies hold money for "safe-keeping" in transactions between a buyer and seller. For example, in an online transaction, PayPal is the reliable third party that holds the buyer's money, and then sends the money to the seller.

    The escrow agent makes sure that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being finalized. This includes receiving funds and documents, completing required forms, and seeking out the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clean title to your property before the agreed upon price is fully paid.

    Escrow holders compile the following documents:

    Closing on the house takes place when all of the procedures of the escrow are complete. All payments owed and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets handed over to you and title insurance begins per the steps of your particular escrow agreement.

    The escrow company gets a payment at the completion of closing. You'll know when it's time to submit the form of payment.

    The Escrow Holder Will:

    • Prepare escrow instructions
    • Perform a title search
    • Comply with lender's requirements as outlined in the escrow agreement
    • Accept funds from the buyer
    • Prorate insurance, tax, interest 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 are met
    • Disburse funds and finish instructions

    The Escrow Holder Won't:

    • Advise you - the escrow agent stays at an impartial, third-party status
    • Give insight about future tax estimations
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Assemble escrow instructions
    • Petition title search
    • Comply with the bank's requirements as outlined in the escrow agreement
    • Intake payments from the buyer
    • Prorate insurance, tax, interest and other payments according to guidelines
    • Record deeds and other documents as instructed
    • Obtain title insurance policy
    • Close escrow when all terms of agreement of seller and buyer have been finished
    • Disburse funds and finish instructions
    • Offer advice - the escrow company must maintain a neutral, third-party status
    • Give insight about tax implications

    Mortgage Escrow Account

    Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

    Once you have the basics of the escrow process down, you can be a confident buyer.