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Tips To a “Worry-Free” Closing

Fire Insurance Policy Credit Cards/Personal Loans/Car Loans:
Your lender will require a hazard insurance policy naming the Depending on the loan ratio to your income, a lender may require
new lender as the Loss Payee. It is to your advantage to shop for all or a portion of your debts be paid off in escrow.
best pricing. Having placed your insurance, instruct your agent
to call Driggs Title, as additional information will be needed to They supply escrow with estimated balances, however it is your
complete your policy. responsibility to provide Driggs Title current billings for payment.
Escrow does not check balances or recent payments made.
Prepaid Interest
Example Funds to close Escrow
Interest on your loan is paid in arrears (for example, your escrow Funds deposited for close of escrow should be in the form
closes June 10th – at the direction of your Lender, Driggs Title will acceptable to the escrow agent. The preferred method is wired
collect prepaid interest from June 9th through July 1st; your first funds on the day of closing or cashiered funds from a local banking
payment on the new loan is due August 1st, which pays interest institution to be deposited the day prior to close of escrow in
from July 1st to August 1st). accordance to the “Good Funds Law”. Personal checks and or
Lender Required Fees Money Orders are not acceptable for closing funds. Title companies
do not accept cash.
PMI (Private Mortgage Insurance):
Should your lender require PMI, (required on new loans wherein a Close of Escrow
borrower puts less than 20% down towards the new loan,) expect The Nevada definition of close of escrow is recordation completed
one-year prepaid PMI in escrow, plus two months deposited into with the County Recorder’s Office. Signing lender and escrow
an impound account. documents is not closing. Following appointments by purchaser
Fire Insurance and seller to sign their individual packages, Driggs Title packages
and returns them to the lender for review. Lenders may take 24 to
One year prepaid through escrow plus two months deposited into 72 hours to review and fund. Following the lender deposit of funds
an impound account. Typically referred to as Homeowners into escrow, Driggs Title presents the original signed documents
Insurance. (deed, deed of trust) to the County Recorder for recordation.
Real Estate Property Taxes Recordation is the “Close of Escrow”.
Depending upon the month of closing, a lender will require a Power of Attorney
property tax reserve which will include enough funds to enable If any one of the purchasers will be unavailable to sign the
the lender to pay the taxes when they become due plus an lender/escrow packages, notify the REALTOR immediately. Your
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additional two month cushion. REALTOR will notify your loan officer and Driggs Title. Many
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lenders will accept a Power of Attorney in advance.

Synopsis – For many prospective buyers, the closer they get to their

closing date, the more worried they become. Follow some of these tips
to make your transaction smooth!

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