First, a little about "escrow". When you're closing on your new property, an escrow holder is used to ensure the process will close correctly and in a timely manner. A home is said to be in escrow when in the closing process, payment 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. PayPal is a good example of an escrow company.
The escrow company is careful to assure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being completed. This includes securing payments and records, filling out required forms, and seeking out the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a clean title to your place before the agreed upon price is fully paid.
The pieces of paperwork the escrow agent may obtain include:
- 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
You're ready to close when each step of the complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. The home's title is given to you and title insurance is issued per the steps of your individual escrow agreement.
When closing is done, you'll make a payment to the escrow company. I'll keep you informed on the next steps.