Whether it's your first property or your next house, I'll walk you through the process. Call me at 954-661-2840.

First-Time Home Buying: How To Close on a Place

 The Greater Florida Realty Team at Coral Shores Realty can walk you through closing - 954-661-2840
Let's talk about "escrow". To finalize the sale of a property, a neutral, third party (the escrow company) is employed to assure the process will close properly and on time. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in a Web purchase, PayPal is the secure third party that holds the buyer's payment, and then sends the funds to the seller.

The escrow company makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being completed. This includes receiving monies and paperwork, finishing required forms, and obtaining the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clear title to your house before the purchase price is fully paid.

Escrow companies collect 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

Closing on the property takes place when the steps of the escrow are finished. All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title gets handed over to you and title insurance is issued per the steps of your individual escrow process.

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:

  • Assemble escrow guidelines
  • Request title research
  • Comply with lender's guidelines as noted in the escrow agreement
  • Receive funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are met
  • Disburse payments and finalize instructions

The Escrow Holder Won't:

  • Offer advice - the escrow holder must maintain a neutral, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Request title inquiry
  • Meet the bank's standards as written in the escrow agreement
  • Accept funds from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finalize instructions
  • Advise you - the escrow company must maintain a neutral, third-party status
  • Give insight about tax implications

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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.

This is a quick run-down of the escrow process. Your particular process might be slightly different based on your bank and your escrow company.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details