Buying a Home Basic: From Escrow For Title Insurance
After all searches, your offer has been accepted and you're on your way to homeownership! But what is involved in closing on a house? What is escrow? Do you need title insurance? To discover more details about title insurance you may check here http://www.clearskiestitle.com.
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The Terminology: Earnest Money and Title Insurance
Homebuyers have a lot of terms thrown at them as they begin the process of buying a home. By the time they accepted bids will be already familiar with realtors and mortgage lenders. Next, it is on the closure requirements. Each term represents something different and each is generally required to close on the property.
Making Sense of The Different Pieces
Even before the bid is accepted, the buyer will have heard the term "earnest money." When a bid is placed, the realtor will suggest the proper amount of earnest money enclose with the offer.
At this point, potential buyers need to provide brokers with a check for that amount. Earnest money is not paid directly to the seller but rather serves as an indication of good faith to the seller that the buyer intends to follow up the purchase of the property.
Once the bid is accepted and the earnest money is safe in escrow, the document will be moved to transfer the ownership of the house. To begin this process, a title company will be involved. The company will create an abstract.