| Settlement
FAQs What is an escrow account?
An escrow account is created when money and
documents are deposited by two or more persons with a third party called an escrow holder.
What is an escrow company?
An independent third party, such as American Title & Escrow, Inc. who
acts as the agent for buyer and seller, or for borrower and lender, carrying out
instructions of both and disbursing documents and funds. Escrow closes and the transfer of
property or document is completed upon fulfillment of conditions specified in the
written instructions, whereupon the necessary deeds and other instruments are recorded.
What are the responsibilities of escrow officers?
An escrow officer is responsible for carrying out instructions provided by both buyer and seller without favoring sides. These
instructions, given by both parties must be carried out before allocation of funds and ownership
transferring can take place. The escrow officer will be given authorization to allocate funds for items during the escrow
period. Instructions given may includes real
estate commissions, liens, collecting funds, time limitations, and the term of the
transaction. This process protects all parties involved by retaining money and
documentation until the mutual instructions are met.
What is closing?
Closing is a term used to describe the execution of documents by buyers and sellers which
must be completed prior to transferring ownership of title to real property.
What are closing costs?
Closing costs are the fees, costs and taxes associated with the purchase of a home, the
borrowing of money and the preparation of paperwork necessary to finalize the sale.
What happens at the closing?
During the closing, ownership of the property is transferred.
How much are the closing
costs?
Closing costs usually add up to 6% or more of the purchase
price. Depending on state and local laws you may have to pay title costs, settlement
fees, loan charges, and taxes and government fees.
What can I do to make sure the transaction closes on
time?
You can help enormously by promptly responding to requests for information.
It is
critical that buyers keep in close contact with their loan officer so that your loan
is processed in a timely manner.
How much money do we bring to our signing appointment?
When we receive the loan package from the lender, it is accompanied by instructions for us
to prepare figures. We will then know precisely how much money is needed. Once the signing
appointments are set and the closing date confirmed, we will compute the exact amount. We
will call prior to signing with the amount so you will have time to get a cashier's check.
After I sell this house, we're going to use the proceeds
to purchase another. Is there anything we can do to make the next purchase go smoothly?
The smoothest possible scenario is to have us perform the closing for both transactions.
Should this be the case, we can immediately credit your sale proceeds toward your new
purchase.
Whom should we call if we have questions?
Your real estate agent will answer questions about your Purchase & Sale Agreement. Your loan
officer will answer questions about your loan status, the conditions of your loan, and
the loan process. American Title & Escrow, Inc. will help or direct you with any other
questions. We understand you will have questions and we are dedicated to helping you in
any way we can. |
