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What To Expect When You're Closing in Phoenix, Arizona
Let's talk about "escrow". When you're closing on your new place, an escrow holder is used to assure the transaction will close properly and in a specific time frame.
When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow.
PayPal is a good example of an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being finalized.
Escrow holders collect the following forms:
- 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
- Tax statements
- Fire and other insurance policies
Upon finishing of all instructions of the escrow, closing can take place.
At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out.
You'll then obtain the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.
When closing is completed, you'll make a payment to the escrow agent.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow guidelines
- Request title inquiry
- Meet the bank's guidelines as written in the escrow agreement
- Intake payments from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all instructions of seller and buyer have been met
- Disburse monies and finalize instructions
- Tell you what's best - the escrow holder stays a neutral, third-party status
- Give insight about the outcome of your taxes
Mortgage Escrow Account
A Mortgage Escrow Account is used to pay on-going fees while there is a loan on the house.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Once you have the rules of the escrow process down, you can be a more assured buyer.