Understanding how Escrow works – Hickerson Realty, Tulsa, OK

Whether it's your first home or your next home, I'll educate you through the process. Call me at (918) 970-4000 and I'll give all the info you'll need to move forward.

Steps to Closing on a House

Hickerson Realty can walk you through closing - (918) 970-4000

First, a little about "escrow". To close the sale of a property, a neutral, third party (the escrow company) is employed to assure the process will close appropriately and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a good way to picture an escrow company.

The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finalized. This includes securing monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that have been paid off with the transaction, assuring you have a free title to your place before the purchase price is fully paid.

Escrow agents compile the following pieces of paperwork:

Requests for payment for various services to be paid out of escrow funds
Loan documents
Tax statements
Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing

You're ready to close when all steps are finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. You'll then secure the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.

At the close of escrow, fees are paid in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Prepare escrow guidelines
Request title search
Meet lender's standards as noted in the escrow agreement
Intake funds from the buyer
Prorate interest, insurance, tax and other payments according to instructions
Record deeds and other documents as instructed
Obtain title insurance policy
Close escrow when all terms of agreement of seller and buyer have been met
Disburse funds and finalize instructions

The Escrow Holder Will Not:

Give advice - the escrow company must stay at a fair, third-party status
Dispense opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Assemble escrow instructions Petition title research Comply with the bank's guidelines as noted 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 Request title insurance policy Close escrow when all terms of agreement of seller and buyer are met Disburse payments and finish instructions		Tell you what's best - the escrow company must stay at a fair, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the ABCs of the escrow process down, you can be a more assured buyer.

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