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What To Expect When You're Closing in Hanover Park, Illinois
Escrow: To complete the sale of a home, a neutral, third party (the escrow holder) is employed to assure the process will close correctly and on time.
When funds are held by a third party in a transaction between a buyer and a seller, it's in escrow.
PayPal is a good way to picture an escrow company.
The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being completed. This includes getting monies and documents, filling out required forms, and obtaining the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your place before the purchase price is fully paid.
The documents the escrow company may collect include:
- 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
Upon completion of all portions of the escrow, closing can take place.
All expenses like title insurance, inspections and real estate commissions are paid.
You'll then receive the title to the house and the title insurance gets issued as outlined in the escrow instructions.
At the close of escrow, payment of funds shall be made in an acceptable form to the escrow.
As your agents, we'll inform you of the acceptable way of paying.
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The Escrow Holder Will: |
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The Escrow Holder Won't: |
- Write escrow guidelines
- Request title research
- Meet lender's standards as outlined in the escrow agreement
- Intake funds from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been finished
- Disburse payments and finalize instructions
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- Offer advice - the escrow holder stays a neutral, third-party status
- Dispense opinions about tax implications
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Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created.
Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a easy to understand guide about the escrow process. Your specific plan will be slightly different depending on your bank and your escrow agent.