Understanding Closing on your New Home

So you are going to buy a home and you hear the word Closing, Title, Escrow, what does this mean to you and how does it affect you and the buying or selling of a property. Closing is also known as the settlement, the settlement of the property you are buying or selling. The settlement includes the accounting of the funds transferred between the two parties by the closing firm also known as the Escrow firm.

The funding source (Buyers Lender) will transfer funds from the lender to Escrow and Escrow will settle all debts associated with the property, such as the sellers mortgage, any utilities, taxes, and insurance or outstanding debts of the sellers associated with the property. The balance after the payoff is known as the capitol gains to the sellers.

Escrow will also transfer the needed funds for the buyer for insurance and taxes.

Escrow is the firm in which typically handles the settlement of the funds, transferring of the funds and coordinating the signing of all the documents by the buyers and sellers. Escrow protects all parties involved by making sure that no funds or properties change hands until all conditions in the agreement have been met.

Title, which is very important establishes who actually owns/owned the property and tracts whom has owned the property over the years. Title must be free and clear, this will make it a marketable title and must be free of any encumbrances (A clouded Title). A clouded title is a property that is not a marketable title (such as an easement issue, a lien against the property, or an encroachment on the property are just a couple of issues that could cloud the title and make the property not have a clear title, therefore should not be transferred to anyone else. Title was set up hundreds of years ago, when travelers where coming across the country and they needed to be reassured that the land/property they where buying was their property. Title was a way to guarantee that the property that they where buying was theirs and not someone else’s.
California or Seattle. Closing is explained in-depth at http://www.homeclosing101.org/index.cfm
and explains what Title is, what Title Insurance is and why you should have Title Insurance.

What is escrow?

Escrow will also transfer the needed funds for the buyer for insurance and taxes.

Escrow is the firm in which typically handles the settlement of the funds, transferring of the funds and coordinating the signing of all the documents by the buyers and sellers. Escrow protects all parties involved by making sure that no funds or properties change hands until all conditions in the agreement have been met.

Title, which is very important establishes who actually owns/owned the property and tracts whom has owned the property over the years. Title must be free and clear, this will make it a marketable title and must be free of any encumbrances (A clouded Title). A clouded title is a property that is not a marketable title (such as an easement issue, a lien against the property, or an encroachment on the property are just a couple of issues that could cloud the title and make the property not have a clear title, therefore should not be transferred to anyone else. Title was set up hundreds of years ago, when travelers where coming across the country and they needed to be reassured that the land/property they where buying was their property. Title was a way to guarantee that the property that they where buying was theirs and not someone else’s.
California or Seattle. Closing is explained in-depth at http://www.homeclosing101.org/index.cfm
and explains what Title is, what Title Insurance is and why you should have Title Insurance.

Posted on November 6, 2014 at 10:05 am
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Down Payment Assistance and Closing Costs Program Available Through WSHFC

A great chance for home buyers to take advantage of a State program that provides an opportunity to get down payment assistance and closing costs at a great interest rate of 0% sand deferred up to 30 years. Don’t miss this opportunity, contact Tom to see how to take advantage today and enjoy what the state is dishing out.

Posted on September 29, 2014 at 3:12 am
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