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  • 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
  • Don't let real estate industry jargon scare you from becoming a homeowner. I can help you understand the process. Call me at 805-899-1100.

    What To Expect When You're Closing in Santa Barbara

     Goodwin & Thyne Properties can walk you through closing - 805-899-1100
    Let's talk about "escrow". To finish the sale of a home, a neutral, third party (the escrow company) is engaged to assure the process will close properly and on time. A home 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 exchange of money takes place. An easy way to understand the concept of what an escrow company does is to think of the use of PayPal for online purchases.

    The escrow company makes sure that the terms and conditions of the agreement between the sellers and the buyers are met prior to the sale being finalized.

    The records the escrow agent may secure include:

    Closing on the home happens when all of the procedures of the escrow are finished. All expenses like title insurance, inspections and real estate commissions are paid. The home's title gets handed over to you and title insurance begins per the policies of your particular escrow process.

    The escrow agent gets a payment at the completion of closing. As your real estate professional, I'll inform you of the acceptable form of payment.

    The Escrow Holder Will:

    • Prepare escrow instructions
    • Request title search
    • Meet the bank's requirements as noted in the escrow agreement
    • Receive payments from the buyer
    • Prorate tax, interest, insurance and other fees 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 payments and finish instructions

    The Escrow Holder Won't:

    • Give advice - the escrow agent stays a neutral, third-party status
    • Give insight about tax implications
    The Escrow Holder Will:
    The Escrow Holder Won't:
    • Prepare escrow instructions
    • Request title research
    • Meet lender's guidelines as outlined in the escrow agreement
    • Accept payments 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 instructions of seller and buyer have been finished
    • Disburse funds and finish instructions
    • Advise you - the escrow agent stays a neutral, third-party status
    • Give insight 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. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.

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