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What To Expect When You're Closing in Los Alamos
First, a little about "escrow". When you're closing on your new property, an escrow agent is used to make certain the transaction will close without problems and in a certain amount of time.
Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller.
For example, in an online purchase, PayPal is the neutral third party that holds the buyer's cash, and then sends the funds to the seller.
The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed prior to the sale being finished.
These are the records that escrow companies 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 all steps are complete in escrow process.
All payments owed and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions).
Title to the home is then transferred to you as new owner and appropriate 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.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow instructions
- Request title research
- Comply with lender's standards as noted in the escrow agreement
- Accept payments from the buyer
- Prorate interest, insurance, tax and other payments 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 finalize instructions
- Offer advice - the escrow agent has to remain an impartial, third-party status
- Offer opinions about future tax estimations
Mortgage Escrow Account
A Mortgage Escrow Account is started to make payments for on-going expenses 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 quick run-down of the escrow process. Your specific methods will be slightly different depending on your bank and your escrow agent.