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What To Expect When You're Closing in Marine City, Michigan
Escrow: To complete the sale of a property, a neutral, third party (the escrow holder) is employed to assure the transaction will close properly and on time.
A house is said to be in escrow when in the closing transaction, payment is held 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 way to picture an escrow company.
The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being finished. This includes getting payments and paperwork, finishing required forms, and getting the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clear title to your place before the negotiated price is fully paid.
The certificates the escrow holder may secure include:
- 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
You're ready to close when each step of the complete in escrow process.
At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out.
The home's title goes to you and title insurance begins per the policies of your particular escrow process.
When closing is done, you'll submit a payment to the escrow company.
As your REALTORS, we'll let you know what is an acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
- Assemble escrow instructions
- Perform a title search
- Comply with lender's requirements as outlined in the escrow agreement
- Intake payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other paperwork as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse funds and finalize instructions
- Give advice - the escrow holder stays at an impartial, third-party status
- Give insight about tax implications
Mortgage Escrow Account
A Mortgage Escrow Account is started to pay recurring fees 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.
Now you know more about being in escrow. And, you can be a smarter home buyer and future homeowner.