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What To Expect When You're Closing in Hickory, North Carolina
Escrow
An escrow company is brought on to assure your place closes on time and the process goes smoothly.
Escrow holders hold money for "safe-keeping" in a deal between a buyer and seller.
PayPal is a good example of an escrow company.
Clearing the final hurdles like obtaining funds, signing forms, securing the documents for loans and liens, and making sure you get a clear title to the home before your purchase gets finalized are all parts of closing in which an escrow holder is useful.
These are the pieces of paperwork that escrow holders usually look to collect:
- 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
- Loan documents
Closing on the home takes place when the steps of the escrow are complete.
At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out.
The property's title gets handed over to you and title insurance begins per the steps of your particular escrow process.
When closing is in it's last step, you'll pay the fees to the escrow company.
You'll know when it's time to submit the form of payment.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Assemble escrow instructions
- Perform a title search
- Comply with the bank's requirements as written in the escrow agreement
- Receive funds from the buyer
- Prorate interest, insurance, tax 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 finished
- Disburse funds and finish instructions
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- Give advice - the escrow holder must maintain a neutral, third-party status
- Give insight about future tax estimations
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Mortgage Escrow Account
A Mortgage Escrow Account is started to pay on-going fees 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 specific plan will vary depending on your bank and your escrow agent.