First-Time Home Buying: How To Close on a Property

 Elan Real Estate Sales can walk you through closing - 252-491-8787
Let's talk about "escrow". When you're closing on your new property, a neutral, third party, your attorney is used to make certain the transaction will close correctly and on time. Attorneys hold money for "safe-keeping" in transactions between a buyer and seller. An everyday way to understand what an escrow company does is to think of the use of PayPal for Internet purchases.

 

The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being completed. This includes getting funds and certificates, finishing required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a free title to your house before the purchase price is fully paid.

Attorneys want to obtain the following records:

Closing on the home happens when the steps of the escrow are done. At this time, all payments and fees for inspections, title insurance and real estate commissions are collected. You'll then get the title to the property and the title insurance gets dispersed as stated in the escrow instructions.

The attorney gets a payment at the completion of closing. I'll keep you informed on the next steps.

The Attorney Will:

  • Assemble escrow guidelines
  • Perform a title search
  • Meet lender's standards 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
  • Obtain title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finish instructions

Please only wire funds to your attorney from their banks wiring instructions that you should get from your attorneys office directly.  North Carolina requires wired funds only, not certified checks or cashiers checks.

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Once you're at ease with the escrow process, you can be a informed buyer.

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