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Closing the Sale in Cumberland

 Reliable Realty Group can walk you through closing - (401) 723-3300
First, a little about "escrow". To finalize the sale of a home, a neutral, third party (the escrow agent) is engaged to assure the transaction will close correctly and on time. Escrow companies hold money for "safe-keeping" in a deal between a buyer and seller. PayPal is a good way to picture an escrow company.

Settling the last details like obtaining funds, completing forms, getting the documents for loans and liens, and assuring you get a clear title to the property before your purchase gets finalized are all parts of closing in which an escrow holder is useful.

The documents the escrow agent may collect include:

  • Loan documents
  • 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

You're ready to close when each step of the complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The property's title gets handed over to you and title insurance begins per the steps of your particular escrow agreement.

The escrow holder receives a payment at the completion of closing. As your REALTOR, I'll let you know what is an acceptable way of paying.

The Escrow Holder Will:

  • Prepare escrow guidelines
  • Request title research
  • Comply with the bank's guidelines as specified in the escrow agreement
  • Accept payments from the buyer
  • Prorate tax, interest, insurance and other fees according to guidelines
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer are complete
  • Disburse payments and finish instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow holder stays at an impartial, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Petition title inquiry
  • Meet lender's standards as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate insurance, tax, interest 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 payments and finalize instructions
  • Tell you what's best - the escrow company must maintain a neutral, third-party status
  • Offer opinions about tax implications

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.

Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.

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