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What To Expect When You're Closing in Rolling Hills Estates, California
First, a little about "escrow". To close the sale of a place, a neutral, third party (the escrow company) is engaged to assure the process will close properly and on time. Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller. An everyday way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.
The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are completed prior to the sale being finalized. This includes getting monies and records, signing required forms, and obtaining the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your place before the negotiated price is fully paid.
These are the documents that escrow agents usually look to collect:
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. You'll then get the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.
The escrow company gets a payment when the closing is complete. You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Petition title research
- Meet lender's requirements as outlined in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer have been finished
- Disburse monies and finish instructions
- Advise you - the escrow holder must stay at a fair, third-party status
- Offer opinions about the outcome of your taxes
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.
Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.