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Closing the Sale in Yukon, Oklahoma
First, a little about "escrow". An escrow company is used to assure your property closes on time and the process goes smoothly. A home is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in a Web transaction, PayPal is the reliable third party that holds the buyer's cash, and then sends the funds to the seller.
The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's agreement are performed prior to the sale being finished. This includes getting payments and paperwork, finishing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your place before the asking price is fully paid.
The pieces of paperwork the escrow company may secure include:
- Loan documents
- 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
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 taken. You'll then receive the title to the house and the title insurance gets issued as agreed upon in the escrow instructions.
When closing is completely 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:
- Prepare escrow instructions
- Request title research
- Comply with the bank's standards as written in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse funds and finalize instructions
- Give advice - the escrow company must maintain a neutral, third-party status
- Dispense opinions about tax implications
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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 have the basics of the escrow process down, you can be a confident buyer.