Closing the Sale
To finalize the sale of the home and/or close your mortgage loan, a neutral, third party (closing attorney, title company, escrow agent) is engaged to assure the transaction will close properly and on time. The title company insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.
Upon completion of all instructions the closing can take place. 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 the seller and appropriate title insurance is issued as outlined in the escrow instructions.
At the close, payment of funds shall be made in an acceptable form. Payment MUST be made in the form a Certified Bank Check.
Mortgage Escrow Account
A Mortgage Escrow Account is established to pay ongoing expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Escrow Account is partially funded at closing and the home buyer makes ongoing contributions through their monthly mortgage payment.