When you have found the house you"re completely smitten with, you"ll be sure to get in touch with the seller and agree to a great deal. However, before you can finally have to house, you need to complete one more step. The last step is what we call the escrow process, or most commonly called as closing.
You may have a real estate agent or an escrow title company to guide you through the whole process, but that doesn"t stop you from finding out what happens during the closing. Here are things that you need to know about escrow:
What Do Title Companies Do
Title companies must make sure that the title of the property you"re going for is clear of any legal issues. They need to check if there are any forgeries, liens, fraud and anything else that could go wrong. You don"t want to be paying for the previous owner"s unpaid debts or discovering an entitled heir to claim the property. These must all be cleared before you close the deal.
If it"s all clear, the title company then issues a title insurance Mandarin FL has to protect both you (the buyer) and lender from any disputes against the property. A lender"s policy remains effective until the mortgage is fully paid. On the other hand, an owner"s policy lasts as long as you and your heirs own the property. That means that the property would still be protected even if you passed it on your son or daughter.
What are Escrow Services?
Escrow agents can act as a neutral party who is in charge of title and escrow responsibilities, transaction details, financing and other paperwork that may be related to the purchase of your home, refinancing of mortgage or title transfer. They must protect all critical documents and make sure that everything is filed correctly on time. They follow the written instructions and comply with every required form to complete the process. They don"t necessarily give out any advice to buyers, but they could help you find ways to speed up the closing process.
As a buyer, you would want to be sure that all the conditions of your purchase are met before you set the deal. A more simple definition of the escrow is a transaction where one engages in the sale, transfer or lease of a property to another person who delivers the documents and finances to an escrow agent.
Choosing Your Escrow Company
Your real estate agent or broker may recommend an escrow officer who, they have successfully worked with in the past. But, you have the right to choose whomever you deem to be fit for the job. There are specific factors that should be considered to select the right one for the task. The level of experience is critical for a smooth transaction as well as the financial ability of the company and the rates of their services. You may also consider choosing an office which you can quickly reach for you to save time.
Rates can vary, so you can take your time in comparing prices that would do good for your budget. Here are additional tips on escrow fees:
You can ask for a list of expected title and escrow costs
You should also determine whether you or the seller will pay the fees. Customs differ in diverse states. In some states, the buyer and seller split up the costs of escrow services.
Watch out for relatively low estimates as you would be charged more for other incidental fees.
So, before you sign the deal, make sure you understand the things that happen during the closing process.