Whether it's your first house or your next place, I'll advise you through the process. Contact me.

What To Expect When You're Closing in Harmony

 RE/MAX Select Properties can walk you through closing - 5078864221
First, a little about "escrow". To close the sale of a place, a neutral, third party (the escrow agent) is employed to assure the transaction will close properly and on time. A place is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties when the transaction is taking place. An everyday way to understand what an escrow company does is to compare it to PayPal for online purchases.

The escrow holder makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finalized. This includes receiving payments and certificates, signing 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 clear title to your property before the final price is fully paid.

Escrow companies collect the following records:

  • 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
  • Fire and other insurance policies
  • Title insurance policies

Upon finishing of all portions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The house's title goes to you and title insurance is issued per the steps of your individual escrow agreement.

At the close of escrow, payments of funds are made in an acceptable form to the escrow. I'll keep you informed on the procedure.

The Escrow Holder Will:

  • Assemble escrow instructions
  • Petition title search
  • Meet the bank's standards as noted in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are met
  • Disburse monies and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow company stays at an impartial, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Perform a title inquiry
  • Meet the bank's standards as noted in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees 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 met
  • Disburse funds and finalize instructions
  • Advise you - the escrow company must stay at a fair, third-party status
  • Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

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.

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RE/MAX Select Properties

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25 W. Center Street PO Box 425
Harmony, MN 55939