Whether it's your first property or your next place, I'll educate you through the process. Call me at (828) 899-0797.

Steps to Closing on a House

 RE/MAX Advantage Realty can walk you through closing - (828) 899-0797
Let's talk about "escrow". To finish the sale of a place, a neutral, third party (the escrow holder) is brought into the picture to assure the transaction will close correctly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a simple way to think of an escrow company.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being finished. This includes securing payments and certificates, filling out 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 asking price is fully paid.

The certificates the escrow holder may obtain include:

  • 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 house happens when all of the procedures of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. The property's title is given to you and title insurance begins per the policies of your particular escrow agreement.

When closing is done, you'll submit a payment to the escrow holder. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

  • Write escrow instructions
  • Petition title search
  • Meet lender's requirements as written in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • 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 finish instructions

The Escrow Holder Will Not:

  • Offer advice - the escrow company must maintain a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Request title search
  • Meet lender's guidelines as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse funds and finish instructions
  • Offer advice - the escrow company must stay at a fair, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

This is a simple outline of the escrow process. Your particular process will vary based on your bank and your escrow holder.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question