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What To Expect When You're Closing in Auburn, New York

 Lake Country Real Estate, Inc. can walk you through closing - (315) 258-9147
Let's talk about "escrow". To finalize the sale of a place, a neutral, third party (the escrow company) is employed to assure the process will close properly and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an online auction, PayPal is the reliable third party that obtains the buyer's funds, and then disburses the payment to the seller.

The escrow agent insures that all terms and conditions of the seller's and buyer's negotiated agreement are performed prior to the sale being finished. This includes getting payments and paperwork, finishing required forms, and seeking out the release documents for any loans or liens that have been paid off with the transaction, assuring you have a clear title to your home before the agreed upon price is fully paid.

These are the legal forms that escrow agents usually compile:

  • 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

You're ready to close when every step is done in escrow process. All payments owed and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then given to you as new owner and appropriate title insurance is issued as outlined in the escrow instructions.

The escrow agent receives a payment when the closing is complete. As your real estate agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Perform a title inquiry
  • Comply with lender's standards as outlined in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse funds and finish instructions

The Escrow Holder Won't:

  • Give advice - the escrow holder stays a neutral, third-party status
  • Offer opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Perform a title search
  • Comply with the bank's guidelines as written in the escrow agreement
  • Intake funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been finished
  • Disburse payments and finalize instructions
  • Give advice - the escrow holder has to remain an impartial, third-party status
  • Give insight about tax implications

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.

Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.

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