Whether it's your first home or your next place, I'll educate you through the process. Call me at (727) 455-5510.

Steps to Closing on a Home

Hot Homes Realty can walk you through closing - (727) 455-5510

Escrow: An escrow company is used to assure your home closes on time and the process goes smoothly. A house is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. PayPal is a simple way to think of an escrow company.

The escrow agent insures that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finished. This includes getting funds and certificates, finishing required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a clean title to your property before the agreed upon price is fully paid.

These are the documents that escrow companies usually look to collect:

Loan documents
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

You're ready to close when every step is finished in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. The property's title gets transferred to you and title insurance is issued per the policies of your individual escrow process.

The escrow agent 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:

Prepare escrow instructions
Perform a title search
Meet the bank's guidelines as noted in the escrow agreement
Accept funds 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 met
Disburse monies and finish instructions

The Escrow Holder Will Not:

Advise you - the escrow agent has to remain an impartial, 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 Meet lender's requirements as written in the escrow agreement Intake 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 are complete Disburse monies and finish instructions		Give advice - the escrow agent has to remain an impartial, third-party status Offer opinions about tax implications

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.

This is a quick run-down of the escrow process. Your particular methods might be slightly different depending on your lender and your escrow company.