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Escrow
To close the sale of a property, a neutral, third party (the escrow agent) is engaged to assure the transaction will close correctly and on time. A property is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. For example, in an Internet purchase, PayPal is the secure third party that holds the buyer's funds, and then sends the funds to the seller.

The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached prior to the sale being finalized.

	Don't let the unknown keep you from becoming a homeowner. We can help you work your way through the process. Call us at 757-361-0106 and we'll give all the info you'll need to move forward.

These are the legal forms that escrow companies usually look for: 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

Upon finishing of all instructions of the escrow, closing can take place. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then given to you as buyer and appropriate title insurance is issued as noted in the escrow instructions.

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

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow instructions Request title research Meet the bank's requirements as written in the escrow agreement Intake funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are complete Disburse payments and finish instructions		Advise you - the escrow agent must stay at a fair, third-party status Offer opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay recurring expenses while there is a loan on the 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 easy to understand guide about the escrow process. Your individual methods may be different based on your bank and your escrow company.