How Escrow Works - Latte Stone Properites, LLC, Guam

Don't let the unknown scare you from becoming a homeowner. I can help you work your way through the process. E-mail me at frank@lspguam.com .

Completing the Transaction

Latte Stone Properties, LLC can walk you through closing - (671) 647-5577

First, a little about "escrow". A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your house closes on time and the money exchanging part of closing goes smoothly. A place is said to be in escrow when in the closing process, funds is held by a third party on behalf of a buyer and a seller when the transaction is taking place. For example, in a Web auction, PayPal is the neutral third party that holds the buyer's cash, and then sends the funds to the seller.

The escrow holder insures that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finalized. This includes securing funds and records, filling out required forms, and obtaining the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clear title to your place before the final price is fully paid.

Escrow agents look for the following legal documents:

Loan documents
Tax statements
Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing
Requests for payment for various services to be paid out of escrow funds

You're ready to close when every step is complete in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. Title to the property is then given to you as buyer and related title insurance is issued as noted in the escrow instructions.

The escrow holder receives a payment when the closing is complete. You'll know when it's time to submit the form of payment.

The Escrow Holder Will:

Prepare escrow instructions
Perform a title inquiry
Meet lender's requirements as written in the escrow agreement
Receive payments from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other paperwork as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer are met
Disburse payments and finish instructions

The Escrow Holder Will Not:

Tell you what's best - the escrow company must stay at a fair, third-party status
Offer opinions about the outcome of your taxes

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Request title search Meet lender's standards as written in the escrow agreement Accept funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all instructions of seller and buyer are met Disburse monies and finalize instructions		Tell you what's best - the escrow agent stays a neutral, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

A Mortgage Escrow Account is used to pay rolling fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.

Once you have the basics of the escrow process down, you can be a better buyer.

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