Whether it's your first place or your next home, I'll help you through the process. Contact me and I'll make sure you're a smart buyer.

First-Time Home Buying: Closing

 Hosking Associates Real Estate Company can walk you through closing - (925)381-6804
Escrow: To finish the sale of a property, a neutral, third party (the escrow agent) is engaged to assure the process 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. An easy way to understand the concept of what an escrow company does is to compare it to PayPal for Internet purchases.

The escrow agent insures that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being completed. This includes getting funds and records, filling out required forms, and getting the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your place before the asking price is fully paid.

These are the records that escrow holders usually compile:

  • 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
  • Tax statements

You're ready to close when every step is finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the house and the title insurance gets dispersed as stated in the escrow instructions.

The escrow agent receives a payment at the completion of closing. As your agent, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:
The Escrow Holder Won't:
  • Write escrow guidelines
  • Request title search
  • Comply with the bank's requirements as written in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finish instructions
  • Give advice - the escrow holder stays at an impartial, third-party status
  • Give insight about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for recurring fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

This is a simple outline of the escrow process. Your specific plan may be slightly different depending on your lender and your escrow holder.