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What To Expect When You're Closing in Naples, Florida
Escrow: When you're closing on your new home, a neutral, third party (known as the escrow holder or the escrow agent) is used to make certain the transaction will close correctly and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a good way to picture an escrow company.
The escrow company is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finished. This includes securing monies and paperwork, completing required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a clean title to your property before the purchase price is fully paid.
The records the escrow holder may obtain include:
- 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
Closing on the home happens when the steps of the escrow are finished. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. The home's title is given to you and title insurance is issued per the policies of your particular escrow agreement.
When closing is finished, you'll make a payment to the escrow company. You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow guidelines
- Request title inquiry
- Comply with the bank's standards as specified in the escrow agreement
- Receive funds from the buyer
- Prorate tax, interest, insurance and other fees according to instructions
- Record deeds and other documents as instructed
- Obtain title insurance policy
- Close escrow when all instructions of seller and buyer are complete
- Disburse payments and finish instructions
- Tell you what's best - the escrow company must maintain a neutral, third-party status
- Give insight about future tax estimations
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.
Now you know more about how to close on your future home. And, you can be a better informed home buyer and future homeowner.