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What To Expect When You're Closing in Bay Shore, New York
Let's talk about "escrow". To complete the sale of a home, a neutral, third party (the escrow company) is employed to assure the transaction will close properly and on time.
A home is said to be in escrow when in the closing process, money is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place.
An easy way to understand what an escrow company does is to think of the use of PayPal for online purchases.
The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being completed. This includes getting payments and paperwork, filling out required forms, and seeking out the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a free title to your place before the asking price is fully paid.
These are the legal forms that escrow companies usually look for:
- 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
You're ready to close when every step is done in escrow process.
All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions).
The house's title goes to you and title insurance begins per the steps of your individual escrow process.
The escrow company receives a payment when the closing is complete.
As your REALTOR, I'll inform you of the acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Prepare escrow instructions
- Petition title research
- Comply with lender's guidelines as outlined in the escrow agreement
- Accept funds from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer are complete
- Disburse monies and finish instructions
- Advise you - the escrow agent must stay at a fair, third-party status
- Offer opinions about tax implications
Mortgage Escrow Account
A Mortgage Escrow Account is established to make payments for rolling 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.
Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.