Don't let real estate industry jargon scare you from becoming a homeowner. I can help you understand the process. E-mail me at frank@qmetrorealtors.com .

What To Expect When You're Closing in Albuquerque

 Qmetro Realtors Inc can walk you through closing - 505.615.0436
Let's talk about "escrow". To close the sale of a home, a neutral, third party (the escrow agent) is engaged to assure the transaction will close perfectly and on time. When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow. An easy way to think of what an escrow company does is to think of the use of PayPal for online purchases.

Clearing the final hurdles like receiving funds, finishing forms, obtaining the documents for loans and liens, and assuring you get a clear title to the house in preparation of your purchase gets finalized are all part of the job of the escrow agent.

Escrow holders collect the following records:

  • 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
  • Tax statements
  • Fire and other insurance policies

Closing on the property takes place when all of the procedures of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. You'll then secure the title to the property and the title insurance gets dispersed as noted in the escrow instructions.

When closing is completed, you'll make a payment to the escrow company. As your agent, I'll inform you of the acceptable way of paying.

The Escrow Holder Will:

  • Write escrow guidelines
  • Perform a title research
  • Comply with the bank's guidelines 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 legal documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been finished
  • Disburse payments and finish instructions

The Escrow Holder Will Not:

  • Give advice - the escrow company must maintain a neutral, third-party status
  • Offer opinions about future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Petition title inquiry
  • Comply with lender's requirements as written in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other paperwork as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse funds and finish instructions
  • Give advice - the escrow agent has to remain an impartial, third-party status
  • Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your 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 simple outline of the escrow process. Your specific plan could vary depending on your lender and your escrow company.

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