Whether it's your first place or your next home, I'll advise you through the process. Call me at (682) 667-5556.

What is Escrow?

 DFW Skyline Realty can walk you through closing - (682) 667-5556
First, a little about "escrow". To close the sale of a home, a neutral, third party (the escrow holder) is brought into the picture to assure the process will close perfectly and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to think of what an escrow company does is to think of how you might use PayPal for online purchases.

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finished. This includes getting monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that have been cleared with the transaction, assuring you have a free title to your property before the asking price is fully paid.

The documents the escrow company may secure 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

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

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. I'll keep you informed on what comes next.

The Escrow Holder Will:

  • Write escrow instructions
  • Petition title search
  • Comply with the bank's guidelines as written in the escrow agreement
  • Receive 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 are met
  • Disburse monies and finalize instructions

The Escrow Holder Won't:

  • Tell you what's best - 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:
  • Assemble escrow guidelines
  • Petition title inquiry
  • Comply with the bank's requirements as noted in the escrow agreement
  • Intake 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 instructions of seller and buyer are met
  • Disburse monies and finish instructions
  • Offer advice - the escrow company has to remain an impartial, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going fees while there is a loan on the house. 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 easy to understand guide about the escrow process. Your specific plan could be unique based on your bank and your escrow agent.

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