Escrow 101

Escrow
To close the sale of a home, a neutral, third party (the escrow holder) is employed to assure the transaction will close correctly and on time. A property is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties when the exchange of money takes place. For example, in an Internet transaction, PayPal is the secure third party that holds the buyer's money, and then hands over the payment to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the two parties are met prior to the sale being finalized.

	Don't let real estate industry jargon prevent you from becoming a homeowner. We can help you work your way through the process. Call us at 916-813-2961.

Escrow companies want to acquire the following pieces of paperwork: 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

You're ready to close when each step of the finished in escrow process. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title is given to you and title insurance begins per the steps of your particular escrow agreement.

At the close of escrow, payments of funds are 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:
Assemble escrow instructions Request title inquiry Comply with lender's requirements as noted in the escrow agreement Receive funds from the buyer Prorate interest, insurance, tax and other payments according to guidelines Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer have been met Disburse funds and finish instructions		Tell you what's best - the escrow agent stays a neutral, third-party status Offer opinions about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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.

Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.