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The Process of the Close of Escrow Explained

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By : Faith Warner    99 or more times read
As a home buyer, you should have the capacity to understand all the necessary transactions while closing real estate deals. By understanding such processes, you can make sure that none of your rights as a buyer is undermined. Becoming familiar with the closing process and its costs can make your participation in it more useful and valuable.

Dealing with closing costs can become a complicated task if you do not consider the aforementioned pieces of advices. Be practical and learn more about how much you will need to spend on closing costs. You should also become an active player by knowing how its procedures actually progress. Read this article and start opening your eyes to the real processes behind the close of escrow accounts.

Understanding the closing process and the escrow account

The closing process is the last stage in the home buying process. This is the time when all unsettled issues and unpaid balances are addressed. In this stage, you will also start negotiating with your seller in order to influence some of the terms in your agreement contract.

Meanwhile, an escrow account is a joint bank account where money reserved for closing costs are deposited. It is usually handled by an efficient real estate broker or a well-known escrow company. Acting as settlement agents, they will make sure that all the provisions on the terms of agreement are being properly observed. Neither you nor the seller is qualified to assume this role because your personal interests might affect the integrity of the entire banking procedure.

After opening an account under your chosen bank, the broker will collect all the money allotted for closing costs and deposit them into the bank. He makes sure that its contents are only disbursed for official business transactions related to the payment of closing costs. By managing the escrow process, he will help all the involved parties get what they really deserve.

How the closing of escrow proceeds

After disbursing the money to pay property taxes, homeowners association fees, and other important closing costs, your broker will start assuming the role of a closing agent. He closes the account and makes sure that all its contents are properly spent.

His job does not end upon closing the escrow account. He will also need to give you and the seller a copy of his detailed inventories. In these financial statements, all the expenses are disclosed and computed in order to make sure that no mistake or misbehavior affected the closing of escrow.

Doing your part

You cannot just sit back and watch your broker do all the work. You have the responsibility to double-check if he is professionally performing his tasks. Do this by visiting legal offices and verifying if the deed of trust and title transfers were forwarded to their office. If not, contact your settlement agent and ask him why this kind of delay could happen.

As previously mentioned, you will also be required to choose a bank that would act as the escrow holder. Be careful in choosing a bank because this can make or break the success of the entire closing process.

By understanding these important things, you can make sure that the close of escrow is carried out smoothly and efficiently. Always look for possible loopholes that might affect escrow transactions and delay your long-awaited home purchase.
Real Estate Property in Andersen Springs Chandler AZ, Real Estate Property in Fulton Ranch Chandler AZ and Residential Real Estate in Sunbird Chandler AZ can offer you a whole deal of information about the real estate market. Whether you want to sell your house, buy a property or rent one, getting all the information that you need will give you a great advantage.

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