Understanding how Escrow works – Hanley Agency, Inc., Pittsburgh, PA

Don't let the unknown prevent you from becoming a homeowner. I can help you understand the process. Contact me.

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

Hanley Agency, Inc. can walk you through closing - 412-422-7900

Let's talk about "escrow". To finish the sale of a property, a neutral, third party (the escrow company) is engaged to assure the transaction will close correctly and on time. A house is said to be in escrow when in the closing process, payment is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. PayPal is a good way to picture an escrow company.

The escrow holder is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being completed. This includes receiving funds and records, finishing required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a clean title to your property before the final price is fully paid.

Escrow companies compile the following pieces of paperwork:

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 instructions of the escrow, closing can take place. All debts and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then secure the title to the property and the title insurance gets dispersed as agreed upon in the escrow instructions.

The escrow company gets a payment at the completion of closing. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Write escrow guidelines
Perform a title inquiry
Meet the bank's requirements as written in the escrow agreement
Intake payments from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other documents as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer are met
Disburse monies and finalize instructions

The Escrow Holder Will Not:

Give advice - 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:
Assemble escrow guidelines Perform a title inquiry Meet lender's requirements as written in the escrow agreement Accept funds from the buyer Prorate interest, insurance, tax 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 are met Disburse funds and finalize instructions		Offer advice - the escrow agent stays at an impartial, third-party status Give insight 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. 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 more informed home buyer and future homeowner.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information

* Name:

* Email:

Phone:

Street Address:

City:

State:

Country:

Zip/Postal Code:

Some Details

When Are You Moving?:

Where Are You Moving:

Your Price Range?:

Number of Bedrooms?:

Number of Bathrooms?:

Size In Square Feet?:

Any Comments, Concerns, Or Questions:

SMS Messaging:

By checking the box, you agree that Hanley Agency, Inc. may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.