Purchasing a house for the first time can be overwhelming. Let me help you. E-mail me at nzart@hotmail.com .

First-Time Home Buying: Closing

 Greater R.I. Properties, LLC can walk you through closing - 401-932-9005
Let's talk about "escrow". An escrow agent is brought on to assure your house closes on time and the process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in a Web transaction, PayPal is the reliable third party that obtains the buyer's cash, and then hands over the money to the seller.

Tying up any loose ends like taking in funds, completing forms, securing the documents for loans and liens, and making sure you get a spotless title to the home before your purchase gets finalized are all parts of closing in which an escrow agent is useful.

Escrow agents want to obtain the following pieces of paperwork:

  • 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 property takes place when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then given to you as buyer and related title insurance is issued as outlined in the escrow policy.

The escrow agent receives a payment at the completion of closing. I'll keep you informed on the next steps.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Request title inquiry
  • Meet the bank's guidelines as written in the escrow agreement
  • Accept funds 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 are met
  • Disburse monies and finish instructions

The Escrow Holder Won't:

  • Tell you what's best - the escrow holder must maintain a neutral, third-party status
  • Dispense opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Petition title inquiry
  • Meet lender's requirements as noted in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse funds and finalize instructions
  • Advise you - the escrow agent stays a neutral, third-party status
  • Give insight 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. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you're comfortable with the escrow process, you can be a better buyer.