Don't let real estate industry jargon prevent you from becoming a homeowner. I can help you become knowledgeable about the process. Contact me and I'll help you become a empowered buyer.

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

 American Dream Corporation dba ADC Realty can walk you through closing - 8582927170
Escrow: An escrow agent is used to assure your house closes on time and the process goes smoothly. A home is said to be in escrow when in the closing process, money 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 everyday way to think of what an escrow company does is to compare it to PayPal for Internet purchases.

Settling the last details like receiving funds, signing forms, getting the documents for loans and liens, and assuring you get a clean title to the property before your purchase gets finalized are all part of the job of the escrow company.

The records the escrow holder 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

Closing on the house happens when all of the procedures of the escrow are complete. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to you as now current homeowner and correct title insurance is issued as outlined in the escrow instructions.

When closing is in it's last step, you'll pay the fees to the escrow holder. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

  • Prepare escrow instructions
  • Request title research
  • Meet lender's requirements as outlined in the escrow agreement
  • Accept funds from the buyer
  • Prorate interest, insurance, tax and other payments according to instructions
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse funds 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 future tax estimations
The Escrow Holder Will:
The Escrow Holder Won't:
  • Prepare escrow instructions
  • Request title search
  • Comply with lender's requirements as outlined in the escrow agreement
  • Accept funds from the buyer
  • Prorate insurance, tax, interest and other payments according to guidelines
  • Record deeds and other paperwork as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer are complete
  • Disburse monies and finalize instructions
  • Offer advice - the escrow company must maintain a neutral, third-party status
  • Dispense opinions about future tax estimations

Mortgage Escrow Account

Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. 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 have the ABCs of the escrow process down, you can be a more assured buyer.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question

American Dream Corporation dba ADC Realty

CABRE Lic. #01411740

4660 La Jolla Village Drive Ste. 100
San Diego, CA 92122-1251