Whether it's your first place or your next house, I'll help you through the process. E-mail me at nzart@hotmail.com to get some free information.

Buying Your Next House: Closing

 Greater R.I. Properties, LLC can walk you through closing - 401-932-9005
Escrow: To complete the sale of a house, a neutral, third party (the escrow agent) is engaged to assure the transaction will close appropriately and on time. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. A simple way to understand the concept of what an escrow company does is to think of the use of PayPal for online purchases.

Tying up any loose ends like taking in funds, finishing forms, securing the documents for loans and liens, and assuring you get a clean title to the property prior to your purchase gets finalized are all parts of closing in which an escrow holder is useful.

These are the documents that escrow holders usually look to collect:

  • 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

Upon finishing of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then obtain the title to the house and the title insurance gets issued as stated in the escrow instructions.

The escrow agent gets a payment at the completion of closing. I'll keep you informed on what comes next.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title inquiry
  • Meet lender's requirements as specified in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments according to guidelines
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse monies and finalize instructions

The Escrow Holder Will Not:

  • Give advice - the escrow agent stays a neutral, third-party status
  • Dispense opinions about the outcome of your taxes
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow guidelines
  • Petition title search
  • Meet lender's guidelines as outlined in the escrow agreement
  • Receive funds 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 have been finished
  • Disburse funds and finish instructions
  • Give advice - the escrow agent stays at an impartial, third-party status
  • Dispense opinions about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is used to make payments for recurring expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

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