Escrow 101

Escrow
An escrow company is used to assure your place closes on time and the closing process goes smoothly. A home is said to be in escrow when in the closing transaction, money is held by a third party on behalf of a buyer and a seller when the exchange of money takes place. For example, in a Web purchase, PayPal is the neutral third party that holds the buyer's money, and then sends the money to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed in preparation of the sale being completed.

	Don't let inexperience with the real estate industry prevent you from becoming a homeowner. I can help you work your way through the process. Call me at 858 952-4600 and I'll give all the info you'll need to move forward.

These are the legal documents that escrow companies usually look to collect: 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 outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title goes to you and title insurance begins per the policies of your particular escrow agreement.

When closing is completed, you'll submit a payment to the escrow holder. As your real estate professional, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow guidelines Request title search Meet the bank's requirements as outlined in the escrow agreement Intake funds from the buyer Prorate tax, interest, insurance and other fees according to instructions Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all instructions of seller and buyer are met Disburse funds and finalize instructions		Offer advice - the escrow company must maintain a neutral, third-party status Offer opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay rolling fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Once you have the ABCs of the escrow process down, you can be a informed buyer.