Don't let real estate industry jargon prevent you from becoming a homeowner. I can help you understand the process. Contact me.

First-Time Home Buying: How To Close on a Property

 Carole Maddox Realty can walk you through closing - 5612628034
Escrow: When you're closing on your new home, an escrow agent is used to guarantee the transaction will close correctly and in a specific time frame. Escrow agents hold money for "safe-keeping" in an exchange between a buyer and seller. PayPal is a good way to picture an escrow company.

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

These are the records that escrow holders usually look for:

  • 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
  • Title insurance policies

Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then transferred to you as now current homeowner and appropriate title insurance is issued as noted in the escrow instructions.

When closing is finished, you'll pay the fees to the escrow company. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title search
  • Meet lender's standards as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow agent stays a neutral, third-party status
  • Give insight about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Petition title search
  • Meet the bank's guidelines as written in the escrow agreement
  • Accept 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 instructions of seller and buyer are complete
  • Disburse payments and finalize instructions
  • Advise you - the escrow agent stays a neutral, third-party status
  • Offer opinions about future tax estimations

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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 particular plan might be different depending on your lender and your escrow company.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details

Carole Maddox

Broker Associate at My Florida Realty LLC

10144 West Indiantown Road
Jupiter, FL 33478