Whether it's your first home or your next property, I'll educate you through the process. Call me at (858) 245-2854.

First-Time Home Buying: How To Close on a Property

Shapar Homes can walk you through closing - (858) 245-2854
Escrow: When you're closing on your new place, an escrow holder is used to make sure the process will close appropriately and in a certain amount of time. A house is said to be in escrow when in the closing transaction, money is held by a third party on behalf of a buyer and a seller when the transaction is taking place. For example, in an Internet transaction, PayPal is the reliable third party that obtains the buyer's money, and then sends the funds to the seller.

Clearing the final hurdles like obtaining funds, completing forms, securing the documents for loans and liens, and assuring you get a clean title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow agent is useful.

The documents the escrow company may collect include:

  • 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
  • Title insurance policies

Closing on the home happens when all of the procedures of the escrow are finished. All debts and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new owner and appropriate title insurance is issued as outlined in the escrow instructions.

When closing is completely finished, you'll submit a payment to the escrow agent. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Assemble escrow guidelines
  • Petition title inquiry
  • Meet the bank's standards as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees 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 have been finished
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Offer advice - the escrow holder must stay at a fair, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title search
  • Comply with lender's guidelines as specified in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse funds and finalize instructions
  • Offer advice - the escrow holder must maintain a neutral, 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.

Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.