| |
| |
|
Real Estate Information |
|
|
|
Understanding the Escrow (Closing) Process
1. What is an escrow? Escrow is defined as a process where parties deposit instructions and funds with a "disinterested" third party until conditions of the instructions are met. This applies whether the purchase is real estate or an expensive Ebay item. In a real estate escrow, a title insurance company, escrow company or attorney will traditionally serve as the third party. They will oversee completion of the instructions (or purchase contract), ensure funds are paid to the seller and the title to the property is transferred to the buyer. In a refinance, your escrow closer will ensure that your previous mortgage company is paid off with the new loan proceeds. 2. How is an escrow started? If you are working with a real estate agent, your agent will "open escrow" for you by depositing your earnest money check and the purchase contract with an escrow/title company or attorney. If you are purchasing a property without the help of a real estate expert, you will have to open the escrow yourself. For a refinance, ask your loan originator for assistance. 3. How will you hold title to the property? Ways of holding title (such as sole and separate, joint tenancy, community property with right of suvivorship) vary by state. Most escrow/title companies can provide information on what applies for your state, but you may want to consult an attorney for legal advice for your particular situation. This is a decision you should make immediately along with exactly how you want your name to appear on all documents. Provide this information to your escrow expert as soon as possible as it allows them to prepare the documents correctly. If you decide later to change how you want to hold title or how your name should appear, these changes may delay your escrow closing. 4. What is title insurance? Title insurance protects your investment by insuring you are the only one with a valid claim to that property. During the escrow period, a title company, abstractor or attorney will research historical records that pertain to the property you are buying or refinancing. After examining those records, a commitment for title insurance will be issued, indicating any items that must be cleared prior to closing. The commitment will be sent for your review. Contact your escrow/title officer or attorney if you have any questions about the commitment. You will receive your title insurance policy after the closing. 5. How is the escrow closed? The escrow officer or attorney will make sure all contract instructions are met. They will monitor deadlines and compliance (such as for home inspection, loan approval, termite report, hazard insurance) and request payoff information for existing loans against the property. If you are the seller, you will sign documents to transfer the property to the buyer. If you are the buyer, you will bring required funds to the closing appointment, and sign loan documents and other legal papers. The seller's existing mortgages or other obligations will be paid off, the seller will receive any remaining proceeds, and the transfer of title to the buyer will be recorded at the courthouse. The escrow is then closed. About the Author: Copyright © 2005, Go Get Experts, for GoGetEscrow.com. All Rights Reserved. Permission to reprint this article is granted if the article is reproduced in its entirety, without editing, including author's information. When using this article in magazines or newsletters or online publications, please include the full URL or a hyperlink to http://www.gogetescrow.com
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Housing Bubbles and You Are we in a housing bubble? To answer that question first we need to understand what a housing bubble actually is. A housing bubble is what happens when the there is a significant rise in the market that is mostly due to the expectation that the prices will continue to rise. Apartment Financing Explained So you're interested in entering the world of property management? Have you thought about how you're going to get into this potentially lucrative market? Let's face it; unless you've just inherited a large sum of money or are otherwise independently wealthy you're going to have to borrow. This is where apartment financing comes in. Sell your Property Faster Learn how to sell your property faster and at the best possible price. Selling your property quickly and at the highest price is the target for everyone looking to move. Don't Just be a Real Estate Agent, be a Professional! Buyer Broker Agreement? What's that? Most agents don't ask their potential buyers to sign anything. It is too?well?you know?uncomfortable. Real Estate Investing - The Job Escape Real estate investing is pretty unusual in lots of ways. Real estate investing is creative. Green Building Media Fact Sheet - Past, Present & Future PastSpecialized, niche home builders began constructing resource-efficient, environmentally sensitive homes in the early 1970s. The home building industry coined the phrase "green building" in the late 1980s/early 1990s, turning a movement into a quiet revolution. Preserve Equity, Build for the Future Using a 1031 Tax Exchange Thinking of trading up on an investment resort property? If so, look into 1031 Tax Exchanges (based on IRS Code Section 1031), which allow taxpayers to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.With an exchange, owners are able to preserve equity, while still selling the property. Equity Equity is the value of your home minus what you owe on your mortgage. For example, If Joe's home is worth $200,000 and Joe still owes $170,000, then Joe's Equity is $30,000. Buying a Newly-Built Home? Ten Benefits of Using a Real Estate Professional It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. However, by using a real estate professional, you have someone to protect your interests and guide you along the right path. What Does It Take To Be A Donald Trump in Real Estate? Since you are a business oriented person, you might be thinking: "oh, great, here it comes another fad that sounds to good to be true and I don't have time for this now." Well, the fact is, like gravity you do not have to believe in Feng Shui for it to work. Finding Structural Problems During Escrow - Upscale Home Example When buying and selling homes, the property purchase is often subject to a satisfactory home inspection being done. Now and then, a home inspection uncovers severe structural problems. Chapter One FSBO the Russ Miles thriller/mystery novel Chapter OneShe reached the phone on its second ring. "This is Tami!" She confidently answered. Sell Your Home Without Paying Any Commissions All of us know that real estate commissions can work out to quite a bit of money - anything from a few thousand dollars with discount brokers to 6% in commissions with full-service agents. That's a substantial sum of money to be paying for something you could very well do on your own. Late Mortgage Payments Sabotage PMI Cancellation There's something you should know about PMI!Private mortgage insurance is commonly referred to as PMI. If a buyer makes a down payment of less than 20% of a home's value the lender will insist that a premium for PMI be added to every monthly payment. Can I Sell My Private Mortgage Notes? In this country millions of homes are sold every year. In most cases buyers go to a bank or finance company to seek mortgage financing. How to Build a Real Estate Investing Power Team As you continue to read about real estate investing, you will no doubt come across the term 'power team'. What is this 'power team'? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible. Tax Assessment/Appraisal: How Do I Know What My Home is Worth? If you are in the home buying or selling market, it's important to understand the difference between tax assessment and appraisal value. Concentrate on the appraisal value because this determines your asking price. Timing Is Everything When It Comes To Buying Homes The old adage that "timing is everything" especially applies to buying a new home. And trying to be at the right house at the right time and get it for the right price can be tricky. How to Buy Your Own Home Buying Your First HomeBuying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks. Real Estate Remains A Strong Investment Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.
|
| home | site map | |
| Realty Web Services © 2007 | MesaSky Services |
