Purchasing property for the first time can be overwhelming. I can help. E-mail me at Susan@johnhortonrealty.com .

The Property is Almost Yours

 John Horton Realty can walk you through closing - 512-834-1600
Let's talk about "escrow". When you're closing on your new home, an escrow agent is used to insure the process will close without problems and in a timely manner. Escrow agents hold money for "safe-keeping" in a deal between a buyer and seller. An everyday way to think of what an escrow company does is to compare it to PayPal for online purchases.

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

Escrow agents want to obtain the following documents:

  • 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
  • Loan documents
  • Tax statements

Upon completion of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then given to you as new owner and appropriate title insurance is issued as outlined in the escrow instructions.

When closing is completely finished, you'll make a payment to the escrow company. As your REALTOR, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

  • Write escrow guidelines
  • Petition title research
  • Meet lender's requirements as noted in the escrow agreement
  • Receive payments from the buyer
  • Prorate interest, insurance, tax and other payments 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 finalize instructions

The Escrow Holder Will Not:

  • Tell you what's best - the escrow agent stays a neutral, third-party status
  • Give insight about tax implications
The Escrow Holder Will:
The Escrow Holder Won't:
  • Assemble escrow guidelines
  • Request title inquiry
  • Meet lender's requirements as written in the escrow agreement
  • Intake payments from the buyer
  • Prorate tax, interest, insurance and other fees according to instructions
  • Record deeds and other documents as instructed
  • Obtain title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse monies and finalize instructions
  • Advise you - the escrow holder stays at an impartial, 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.

Once you have the rules of the escrow process down, you can be a more assured buyer.

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