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Closing the Sale in Nashville
An escrow company is hired to assure your home closes on time and the closing process goes smoothly.
Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller.
For example, in a Web auction, PayPal is the secure third party that obtains the buyer's payment, and then disburses the payment to the seller.
Clearing the final hurdles like taking in funds, completing forms, obtaining the documents for loans and liens, and making sure you get a clear title to the house prior to your purchase gets finalized are all part of the job of the escrow company.
Escrow companies collect the following forms:
- 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 completion of all instructions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
The property's title gets handed over to you and title insurance is issued per the policies of your individual escrow agreement.
The escrow holder receives a payment at the completion of closing.
You'll know when it's time to submit the form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Write escrow guidelines
- Perform a title search
- Comply with lender's requirements as noted in the escrow agreement
- Intake funds from the buyer
- Prorate tax, interest, insurance and other fees according to guidelines
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse funds and finalize instructions
- Advise you - the escrow holder stays 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.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your particular methods will be slightly different based on your bank and your escrow company.