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What To Expect When You're Closing in St. Clair County, Michigan
Escrow: When you're closing on your new home, an escrow agent is used to make sure the process will close appropriately and in a timely manner.
Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller.
A simple way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.
Settling the last details like obtaining funds, completing forms, securing the documents for loans and liens, and assuring you get a clear title to the house in preparation of your purchase gets finalized are all parts of closing in which an escrow company is useful.
These are the records that escrow agents usually look to collect:
- 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
- Tax statements
- Fire and other insurance policies
Upon completion of all instructions of the escrow, closing can take place.
At this time, all payments and dues for inspections, title insurance and real estate commissions are collected.
You'll then secure the title to the home and the title insurance gets dispersed as agreed upon in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow.
We'll keep you up-to-date on the procedure.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Prepare escrow instructions
- Petition title inquiry
- Meet lender's guidelines as outlined in the escrow agreement
- Receive payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer are met
- Disburse monies and finalize instructions
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- Advise you - the escrow company stays at an impartial, third-party status
- Offer opinions about tax implications
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Mortgage Escrow Account
A Mortgage Escrow Account is used to pay on-going expenses while there is a loan on the house.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.