Page 6 - Staci_Bawden_Buyer_Guide

Tips To Make Your Closing Worry Free

Fire Insurance Policy: Funds to close escrow:
Your lender will require a hazard insurance policy naming Funds deposited for close of escrow should be in the form
the new lender as the Loss Payee. It is to your advantage acceptable to the escrow agent. An escrow agent will
to shop for best pricing. Having placed your insurance, require a cashiers check from a local banking institution or
instruct your agent to call Driggs Title, as additional infor- wired funds. Out of town and personal checks will cause
mation will be needed to complete a delay in the transaction. Title companies do not accept
your policy. cash.

Prepaid Interest: Close of escrow:
Example: The Arizona definition of close of escrow is recordation
Interest on your loan is paid in arrears (for example, completed with the County Recorder’s Office. Signing
your escrow closes June 10th – Driggs Title will lender and escrow documents is not closing. Following
collect prepaid interest from June 10th to July 1st.; appointments by purchaser and seller to sign their
your first payment on the new loan is due August individual packages, Driggs Title packages and returns
1st, which pays interest from July 1st to August 1st). them to the lender for review. Lenders may take 24 to
72 hours to review and fund. Following the lender
Lender Required Fees: deposit of funds into escrow, Driggs Title presents the
PMI (Private Mortgage Insurance): original signed documents (deed, deed of trust) to the
Usually 0.05% point fee. Should your lender require PMI, County Recorder for recordation. Recordation is the
(required on new loans wherein a borrower puts less than “Close of Escrow”.
20% down towards the new loan,) expect 1 year prepaid
PMI in escrow, plus 2 months deposited into an impound Power of Attorney:
account. If any one of the purchasers will be unavailable to sign the
lender/escrow packages, notify the Realtor immediately.
Fire Insurance: Your Realtor will notify your loan officer and Briggs Title.
One year prepaid in escrow plus 2 months deposited into Many lenders will accept a Power of Attorney in advance.
an impound account. Typically referred to as Homeown-
ers Insurance. Synopsis – For many prospective buyers, the closer
it is till the closing date, the more worried they
Real Estate Property Taxes: become. Follow some of these tips to make your
Depending upon the month of closing, a lender will transaction smooth.
require a property tax reserve which will include enough
funds to enable the lender to pay the taxes when they
become due plus an additional two month cushion.

Credit Cards / Personal Loans / Car Loans:
Depending on the loan ration to your income, a lender may
require all or a portion of your debts be paid off in escrow.
They supply escrow with estimated balances, however it
is your responsibility to provide Driggs Title current billings
for payment. Escrow does not check balances or recent
payments made.

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