The many facets of purchasing real estate can be overwhelming. I’m here to help you every step of the process. Call me at (970) 214-6350 whenever you have any question, big or small.
Escrow And What To Expect When You're Closing in Estes Park
First, a little about "escrow.” Escrow companies hold money, such as a buyer’s earnest money (a sum that shows your sincere interest in buying a specific property) for "safe-keeping" while your transaction is moving forward. When you're closing on your new house, an escrow agent is used to guarantee the transaction will close without problems and within a specific time frame. Once the seller accepts your offer, your earnest money check is deposited in an escrow account. (If your offer is not accepted, the money is returned to you.)
The escrow company makes sure that all of the terms and conditions of the agreement between the seller and the buyer are completed in preparation of the sale being completed.
These are the legal forms that escrow holders usually look for:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
Closing on the house happens when the steps outlined in the escrow policy are complete and all expenses, such as title insurance, inspections and real estate commissions are paid. Title to the property is then transferred to you as the new owner and related title insurance is issued as noted in the escrow policy.
You will wire your portion of transaction costs to the closing company, usually the day before closing. (For instance, if you are putting 20% of the purchase price down, that amount, minus your earnest money amount, would be the sum you would need to wire through your bank for closing. Each circumstance is unique, and I will go over this with you when we have all the facts that pertain to your particular circumstance.)
Mortgage Escrow Account
A Mortgage Escrow Account is used to pay rolling fees (for instance, your mortgage, taxes and insurance are “rolling fees”) while there is a loan on the house. Usually, the homebuyer makes a payment at closing and also makes regular deposits that are part of your monthly mortgage payment to fund the Escrow Account.
This is a general overview of the escrow process. Your specific plan could be slightly different, depending on your bank and your escrow holder.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Request title search (For instance: past deeds, complete covenants, easement agreements, any existing surveys, etc.)
- Comply with lender's standards as written in the escrow agreement to make sure your property and loans meet legal requirements for your particular circumstance.
- Accept payments from the buyer IThe buyer typically wires money to the escrow holder.)
- Prorate insurance, tax, interest and other payments according to guidelines set forth in the contract and lender agreements.
- Record deeds and other legal documents pertaining to your transaction.
- Obtain title insurance policy, guaranteeing that title is clear, etc.
- Close escrow when all terms of agreement of seller and buyer have been completed. Your title company closing agent prepares all legal documents and will walk you through this part of the process; I will be there to assist you also.
- Disburse payments and finalize transaction. (Think of this as the final "transaction housecleaning." For instance, if a surveyor had been contracted as a stipulation of the sale, they would be paid at this point.)
- Give advice - the escrow holder has to remain an impartial, third-party
- Dispense opinions about tax implications
If you'd like to hear what some of the people I've helped have to say, click here.
What would your ideal home look and feel like?
Let me help you find the home your head and heart envision and assure your interests are protected throughout the entire process. The more you share with me about what your dreams and realities entail, the better I can use my expertise to help you find exactly what you’re looking for. And if you don’t exactly know yet, that’s fine, too. I’ve developed this questionnaire to be sort of your sketchpad to explore with. Please feel free to elaborate on what your dreams look and feel like. Have fun and remember, you can always come back and erase and re-draw them any time you like. Note: This information will be held in strict confidence. It will be used solely to help me find what you’re looking for, without wasting your time.