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What To Expect When You're Closing in Pensacola
Escrow: A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your place closes on time and the process goes smoothly.
A house is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of a buyer and a seller when the exchange of money takes place.
An easy way to think of what an escrow company does is to compare it to PayPal for online purchases.
Tying up any loose ends like taking in funds, completing forms, getting the documents for loans and liens, and making sure you get a spotless title to the property in preparation of your purchase gets finalized are all part of the job of the escrow company.
Escrow holders compile the following documents:
- 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
Upon finishing of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
The property's title goes to you and title insurance begins per the policies of your particular escrow process.
At the close of escrow, in an acceptable form to the escrow.
We'll keep you up-to-date on what comes next.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Assemble escrow instructions
- Petition title inquiry
- Comply with lender's standards as written in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse monies and finish instructions
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- Offer advice - the escrow company stays at an impartial, third-party status
- Dispense opinions about future tax estimations
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Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Now you know more about how to close on your future home. And, you can be a smarter home buyer and future homeowner.