Understanding how Escrow works – Stoneridge Realty & Property Management Services, Vista, CA

The process of buying property for the first time can be overwhelming. I can help. Call me at 7607273776 and I'll give help you purchase the house you want.

Escrow 101

Stoneridge Realty & Property Management Services can walk you through closing - 7607273776

Let's talk about "escrow". When you're closing on your new place, an escrow agent is used to insure the process will close correctly and on time. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in an Internet purchase, PayPal is the neutral third party that holds the buyer's money, and then hands over the funds to the seller.

The escrow agent makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed in preparation of the sale being finished.

These are the pieces of paperwork that escrow agents usually look to collect:

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
Loan documents

Upon finishing of all instructions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. The home's title gets transferred to you and title insurance begins per the policies of your particular escrow agreement.

The escrow holder gets a payment when the closing is complete. I'll keep you updated on the next steps.

The Escrow Holder Will:

Prepare escrow instructions
Petition title inquiry
Comply with lender's guidelines as noted in the escrow agreement
Accept payments 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 terms of agreement of seller and buyer have been met
Disburse monies and finalize instructions

The Escrow Holder Won't:

Tell you what's best - the escrow company must stay at a fair, third-party status
Give insight about future tax estimations

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow instructions Petition title search Meet the bank's guidelines as specified in the escrow agreement Accept funds from the buyer Prorate insurance, tax, interest and other payments according to guidelines Record deeds and other paperwork as instructed Obtain title insurance policy Close escrow when all terms of agreement of seller and buyer have been met Disburse payments and finalize instructions		Tell you what's best - the escrow holder has to remain an impartial, third-party status Dispense opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for recurring fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the basics of the escrow process down, you can be a more assured buyer.