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  • 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
  • Whether it's your first property or your next house, I'll help you through the process. E-mail me at lynnrobin@lynnsellsaustin.com to get some free information.

    Steps to Closing on a House

     Engel & Volkers can walk you through closing - (512) 328-3939
    Let's talk about "escrow". An escrow company is hired to assure your place closes on time and the closing process goes smoothly. Escrow companies hold money for "safe-keeping" in an exchange 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.

    Tying up any loose ends like obtaining funds, finishing forms, obtaining the documents for loans and liens, and assuring you get a clean title to the house before your purchase gets finalized are all part of the job of the escrow holder.

    The records the escrow company may collect include:

    Upon completion of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The home's title gets transferred to you and title insurance is issued per the policies of your particular escrow agreement.

    The escrow holder receives a payment at the completion of closing. You'll know when it's time to submit the form of payment.

    The Escrow Holder Will:

    • Write escrow guidelines
    • Perform a title research
    • Meet lender's standards as written in the escrow agreement
    • Receive funds from the buyer
    • Prorate tax, interest, insurance and other fees according to instructions
    • Record deeds and other legal documents as instructed
    • Obtain title insurance policy
    • Close escrow when all instructions of seller and buyer are met
    • Disburse payments and finalize instructions

    The Escrow Holder Won't:

    • Offer advice - the escrow company must stay at a fair, third-party status
    • Give insight about the outcome of your taxes
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Assemble escrow guidelines
    • Perform a title search
    • Comply with lender's guidelines as outlined in the escrow agreement
    • Intake 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
    • Offer advice - the escrow holder must maintain a neutral, third-party status
    • Dispense opinions about future tax estimations

    Mortgage Escrow Account

    A Mortgage Escrow Account is used to make payments for rolling expenses while there is a loan on the 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.

    This is a easy to understand guide about the escrow process. Your individual methods could be slightly different based on your bank and your escrow holder.

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