Understanding how Escrow works – Hickerson Realty, Tulsa, OK

Whether it's your first house or your next property, I'll help you through the process. Call me at (918) 970-4000.

Closing the Sale in Tulsa

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Escrow: An escrow company is used to assure your place closes on time and the transaction goes smoothly. Escrow agents hold money for "safe-keeping" in transactions between a buyer and seller. An everyday way to understand what an escrow company does is to compare it to PayPal for online purchases.

Clearing the final hurdles like receiving funds, completing forms, getting the documents for loans and liens, and assuring you get a clean title to the property in preparation of your purchase gets finalized are all part of the job of the escrow agent.

These are the pieces of paperwork that escrow companies usually look for:

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 all parts are complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The house's title is given to you and title insurance is issued per the steps of your particular escrow agreement.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your REALTOR, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

Assemble escrow instructions
Perform a title search
Meet the bank's standards as noted in the escrow agreement
Intake payments from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other paperwork as instructed
Request title insurance policy
Close escrow when all instructions of seller and buyer are met
Disburse monies and finalize instructions

The Escrow Holder Will Not:

Give advice - the escrow agent must stay at a fair, third-party status
Give insight about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Request title search Meet lender's requirements as noted in the escrow agreement Accept payments from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse monies and finish instructions		Tell you what's best - the escrow company has to remain an impartial, third-party status Offer opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for rolling fees while there is a loan on the house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

Now you know more about how to close on your future home. And, you can be a more informed home buyer and future homeowner.

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