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Ensuring A Stress-Less Closing

April 21, 2023 by Regine Lane

Ensuring A Stress-Less ClosingBuying a home is an exciting and exhilarating time. Between the time your offer is accepted, and when you finally have keys in hand and you are ready to step into your new home, it can be stressful. The escrow period, also known as the closing, can take the most easygoing home buyer to the brink of insanity.

After you have negotiated your best price and come to an agreement, there are ways to make the escrow process less anxiety-provoking. Here are some tips from top real estate agents to help you get through the escrow process without losing your cool. 

Utilize Your Professionals

Trust your real estate agent to walk you through the entire process is key to a smoothly closing escrow. Rely them to do their job, but don’t be afraid to express any anxieties, and lean on them during negotiations and inspections. They are the experts, so ask questions and ask for advice, but try not to second guess their guidance or recommendations. 

Your additional trusted partner is your mortgage professional. They know how important the financing piece is to this equation and they will be sure to know your timeline and be available to answer questions and assist you throughout this process. 

Stay Organized

Chaos rarely inspires confidence. Stay on top of all paperwork and make sure you sign and return everything to your lender promptly to eliminate delays. The lender and escrow company want the sale to close in a timely fashion, too, so don’t slow them down by being disorganized or failing to return important documentation such as income tax information or bank statements.

Maintain A Healthy Perspective

No home is perfect, so be prepared for inspections that bring some daunting news. Ask to be present when the inspections are performed. The more information you have about your prospective home, the better you will be prepared to negotiate for repairs before they surprise you in the future. 

Ask for credits and repairs as needed, but try to remain objective. Some seemingly minor fixer projects can lead to a much longer time table. You may decide that, when considering the bigger picture and a timely transaction, a couple thousand dollars might not actually be a worth negotiating. 

Be Flexible

Retain as much flexibility as possible during the closing process and focus on the big picture, rather than all of the details. When opening escrow, ask your agent to give you an overview of the expected timeline from beginning to end. Knowing what to expect, and when as well as being aware of projected milestones goes a long way in reducing anxiety. You can, and should, ask to be notified when important milestones are reached.

While you might have it penciled in on your calendar, it’s common for closing dates to change. Instead of thinking of your closing date as set in stone, think of it as a flexible target. Do not book movers until the last minute, so you won’t be stressed if your belongings are all packed in a truck and the escrow date is set forward a day or two.

Don’t forget to breathe!

This is an important time to take care of yourself. Take a run, meditate, or do yoga. Read a book or enjoy a hobby. Moving can be a physically taxing event, so take the time now to relax before the big move.

Before you know it, you will be moving into your new home. Being informed, staying organized and taking care of yourself are key elements. Most important, though, is to rely on your trained professionals to guide you through this process and help to ensure a stress-less closing.

Filed Under: Mortgage Tagged With: Escrow, Mortgage, Stress Relief

Escrow And Your Mortgage: The Most Important Points To Know

November 22, 2022 by Regine Lane

Escrow And Your Mortgage: The Most Important Points To KnowThere are many complicated terms thrown around regarding your mortgage, and one of them is an escrow account. You will probably hear that your lender will collect some additional money every month for escrow payments. If you take a look at your mortgage statement, you will see your interest, your principal, and your escrow. What does this mean, and why do you have to pay additional money that isn’t going toward the balance of your loan?

The Definition Of An Escrow Account

An escrow account is an extra account that your lender opens on your behalf to make sure certain expenses are covered. Because your mortgage investor has a lien against the property, the mortgage company has an interest in making sure your property does not fall into foreclosure. That means that you need to stay on top of all of your expenses, including those beyond your mortgage. 

What Escrow Accounts Will Cover

Generally, your mortgage company will open an escrow account that is used to cover your home insurance premium and your real estate taxes. Generally, real estate taxes and home insurance premiums are only billed once per year. If you get a large bill for several thousand dollars, you might not be able to cover it. If you don’t pay your real estate taxes, the government could foreclose on your house. Instead of asking you to pay thousands of dollars at once, your mortgage company will open an escrow account for you, collecting small amounts of money every month to make sure you stay up to date on your home insurance taxes and premiums.

How The Balance In Your Escrow Account Is Determined

If your mortgage company is collecting additional money every month, that means there is less money for you to spend. Therefore, your mortgage company is careful only to collect as much money as required. Your escrow account balance is determined by your property taxes and insurance premiums. During an annual escrow review, your mortgage company will see if the account has a surplus balance. If it does, you will get a refund for the surplus balance. Keep in mind that if your real estate taxes or insurance premiums go up, your mortgage company may collect more money in the future. 

Filed Under: Mortgage Tagged With: Escrow, Mortgage, New Home

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