Article Sphere Logo
 

Escrow Eases the Home Buying Process

By Expert Author: Lee Bell | Article Abstract
Word Count: 500 words | Views: 215 view(s)
Escrow is a term that will undoubtedly be discussed during the course of purchasing a house. Putting a down payment on a home begins the buying process. As there are several steps necessary to complete the process, it is important to guard this down payment. Hence the purpose of escrow, which is an account opened and maintained by an unbiased third party, which is not associated with the buyer or seller in any way.

Selecting an escrow agent is a joint decision between the buyer and the seller, usually the realtor has one that they recommend. Make sure that the agent you choose has experience in handling escrow. Also, before agreeing on an escrow agent, it is wise to investigate the company the agent works for.

Is Escrow a Requirement?

You are not required to use an escrow agent in real estate, but you will have a hard time finding a bank or lending institution that does not require escrow. This is due to the amount of money which is changing hands in the transaction. Escrow acts as a defence against either side not honoring the terms of the transaction.

Escrow: Things to Keep in Mind

Once escrow actions begin, be sure to have your photo identification and bring along the information on the home insurance you are purchasing. Closing normally occurs within 30 to 60 days, long enough for you to get financing and the seller to meet his obligations, and the escrow account provides a guarantee that the money placed in it be paid out when all terms of the contract have been fulfilled.

Buying a home can be a hectic and nerve-wracking time. You will need to secure homeowner's insurance and have your new home inspected and assessed for financing. It is important that you keep in touch with your escrow agent. Do not be afraid to call him or her with any questions, that is their job. An escrow agent can explain all escrow-related matters so that you will be able to execute any deadlines. If there are obligations the seller has agreed to, you must inform the agent if you are not satisfied. Make sure to inspect each document for correctness, and inform your agent any changes that need be made for accuracy. Just like closing fees, escrow costs can vary depending upon where the contract is being executed and the company handling it.

Once the transaction has been completed, you will receive a closing statement from the agent. This statement will show the money you paid into the account, the escrow agent's fee, the price of the property, and any other claims on the property, such as liens. If you have overpaid, you may also receive a refund check. Once you have received the closing statement, do not lose it. You will need to provide it to your accountant, to ensure accuracy on your tax returns. Also, the Internal Revenue Service may want to see your closing statement to prove that you paid the money you state for the property.
Lee Bell

About the Author/Author Bio

If you are looking looking for upscale property in the San Diego area, explore Carmel Valley luxury homes for sale or Carmel Mountain Ranch real estate. For more information about San Diego communities, visit our blog: California Community Guide.

Article Source: http://www.articlesphere.com/Article/Escrow-Eases-the-Home-Buying-Process/160010

Article Submitted: 2008-08-14 | This Article has been viewed 215 times.

Rate Article

Related Videos

How To Install an Exterior Entry Door - The Home Depot
How To Install a Slab Door - The Home Depot
Install Windows in Frame Construction 101--The Home Depot
Amenities ROCK - Apartment Home Living Leasing Tip
Length Of The Home Study Process
 

More "Real Estate" Related Articles

 
 

Listed below are more articles related to the above article from the "Real Estate" article category.

People interested in the above article "Escrow Eases the Home Buying Process" are also interested in the related articles listed below:

 
Purchasing real estate leads had been a common practice in the business but with the emergence of the Internet as a source of information for many people who are planning to buy a home, why not have your own lead generation system?
Are you thinking of buying a new home and want to find one that is energy efficient and better for the environment? Going green with homes is a big trend right now, thanks to the lower energy costs and the smaller carbon footprint that goes with it. But if you want to find a good green home, you need to know what to ask.
The houses found in the Houston foreclosure homes list are the ones that are meant for sale. Thus people can opt for properties and bid for them. There is no need to spend time unnecessarily on properties that are not meant for sale.
As with all of our Dream Home articles the scenarios are based off of Illinois law. There will often be small variations from state to state. In "Step Three: Making an Offer" we discussed how to make an offer on your Dream Home. Now that your offer has been accepted and the contract and all riders and addenda have been signed by both parties you have what is now commonly referred to as an Executed Contract.
Home staging expert, Staging Diva, advises those constantly decorating and redecorating their homes to take lots of before and after photos. It's never too early to start your home staging portfolio.
For many years, Mexico Real Estate has been the #1 destination for Canadian retirees looking for retirement homes. Sunny climate, fabulous beaches and good lifestyle are some of the reasons why Canadians come to Mexico...
If you are in the real estate market looking for a good deal on a home or property in an area that was previously out of your price range, you may be in for a pleasant surprise. Prices have dropped in many desirable areas. In some hard hit markets, such as California and Florida, homes for sale have been reduced by 25-35 per cent or more in the past year.
 
Article Directory Home All Categories Real Estate
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish