What To Expect When You're Closing in Duncan, Oklahoma
Escrow: To complete the sale of a house, a neutral, third party (the escrow agent) is brought into the picture to assure the transaction will close correctly and on time.
Escrow companies hold money for "safe-keeping" in an exchange between a buyer and seller.
An everyday way to think of what an escrow company does is to think of how you might use PayPal for online purchases.
The escrow company insures that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being completed. This includes receiving funds and records, filling out required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a clean title to your house before the negotiated price is fully paid.
Escrow companies look for the following pieces of paperwork:
- 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
Closing on the house happens when the steps of the escrow are complete.
All expenses like title insurance, inspections and real estate commissions are paid.
Title to the house is then transferred to you as new homeowner and correct title insurance is issued as noted in the escrow instructions.
At the close of escrow, in an acceptable form to the escrow.
You'll know when it's time to submit the form of payment.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow instructions
- Request title inquiry
- Meet the bank's requirements as noted in the escrow agreement
- Receive funds from the buyer
- Prorate interest, insurance, tax and other payments according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been finished
- Disburse funds and finalize instructions
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- Tell you what's best - the escrow holder stays a neutral, third-party status
- Give insight about the outcome of your taxes
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Mortgage Escrow Account
A Mortgage Escrow Account is established 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.
Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.