Understanding Closing on your New Home

So you are going to buy a home and you hear the word Closing, Title, Escrow, what does this mean to you and how does it affect you and the buying or selling of a property. Closing is also known as the settlement, the settlement of the property you are buying or selling. The settlement includes the accounting of the funds transferred between the two parties by the closing firm also known as the Escrow firm.

The funding source (Buyers Lender) will transfer funds from the lender to Escrow and Escrow will settle all debts associated with the property, such as the sellers mortgage, any utilities, taxes, and insurance or outstanding debts of the sellers associated with the property. The balance after the payoff is known as the capitol gains to the sellers.

Escrow will also transfer the needed funds for the buyer for insurance and taxes.

Escrow is the firm in which typically handles the settlement of the funds, transferring of the funds and coordinating the signing of all the documents by the buyers and sellers. Escrow protects all parties involved by making sure that no funds or properties change hands until all conditions in the agreement have been met.

Title, which is very important establishes who actually owns/owned the property and tracts whom has owned the property over the years. Title must be free and clear, this will make it a marketable title and must be free of any encumbrances (A clouded Title). A clouded title is a property that is not a marketable title (such as an easement issue, a lien against the property, or an encroachment on the property are just a couple of issues that could cloud the title and make the property not have a clear title, therefore should not be transferred to anyone else. Title was set up hundreds of years ago, when travelers where coming across the country and they needed to be reassured that the land/property they where buying was their property. Title was a way to guarantee that the property that they where buying was theirs and not someone else’s.
California or Seattle. Closing is explained in-depth at http://www.homeclosing101.org/index.cfm
and explains what Title is, what Title Insurance is and why you should have Title Insurance.

What is escrow?

Escrow will also transfer the needed funds for the buyer for insurance and taxes.

Escrow is the firm in which typically handles the settlement of the funds, transferring of the funds and coordinating the signing of all the documents by the buyers and sellers. Escrow protects all parties involved by making sure that no funds or properties change hands until all conditions in the agreement have been met.

Title, which is very important establishes who actually owns/owned the property and tracts whom has owned the property over the years. Title must be free and clear, this will make it a marketable title and must be free of any encumbrances (A clouded Title). A clouded title is a property that is not a marketable title (such as an easement issue, a lien against the property, or an encroachment on the property are just a couple of issues that could cloud the title and make the property not have a clear title, therefore should not be transferred to anyone else. Title was set up hundreds of years ago, when travelers where coming across the country and they needed to be reassured that the land/property they where buying was their property. Title was a way to guarantee that the property that they where buying was theirs and not someone else’s.
California or Seattle. Closing is explained in-depth at http://www.homeclosing101.org/index.cfm
and explains what Title is, what Title Insurance is and why you should have Title Insurance.

Posted on November 6, 2014 at 10:05 am
Tom Fine | Category: Tom Fine's Blog | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , ,

Jobs Report in! Good News. Save a Buck!

I love hearing good news, the job numbers are in and it's up 169,000.  Yeah! Unemployment in Washington down to 6.9% and in Seattle it's down to 5.5%.  We are on the slow track to recover and at least it's going in the right direction. Businesses are opening and expanding.

I know we are all smarter from what we have learned through for the last several years, it has made us smarter and wiser. Not to mention more cautious. I now know what my Grandfather, Joe meant by saying, save a buck! Back then it was a buck and today it's at least a $100's. My Grandfather lived a simple and comfortable life. He owned multiple rentals in downtown Detroit, Ouch! They where sold years ago for virtually nothing, yet it provided him and Grandma a comfortable income. Joe also had a tailor shop where he had pre-made suits and a great lay-away program.  Listen to this:  When one of his tenants needed to go to court because of non payment of rent or some other issue that he found out about, Joe had them come to his shop and he would outfit his tenant in a suit to look good. He said you always should look good when taking care of business.  He had such a big heart and great values.  Joe saw a lot in his life, from escaping the holocaust to the depression and living a long good life.  What do I take away form this?

How do I treat others?

Am I saving a buck?

What can I do for others?

How can I help the community?

What I put into this world, will it help and will anyone listen?

 

What does Joe (My Grandfather) have to do with the jobs numbers and unemployment? I think about how he helped put people in the right frame of mind when they where down and it gave his tenants courage and the ability to feel good about themselves so they can be a positive influence to their family and community.  Being a good contributor to society, working, paying taxes and being an asset to America instead of a liability.

 

I am looking forward to continuing good number reports as well as lower unemployment numbers.  While I save a buck.

 

Tom Fine

Fine Homes NW, Inc.

Serving Seattle and surrounding areas for your real estate needs

 

 

 

Posted on September 6, 2013 at 9:52 pm
Tom Fine | Category: Tom Fine's Blog | Tagged , , , , , , , , , ,