Reason 91 - Your Real Estate Agent Helps You Arrange Escrow Service

 

The final stages of the property’s purchase agreement are very vital in the success of the deal. This one of the most critical stage in the purchase process because this involves multiple mounting documentation requirements. You may even need to get a third party that will serve as the administrator.

In real estate industry, the presence of an escrow service is very important. It will determine the finality of the deal that will consider the mutual interest of both the buyer and the seller. Both money and documents will be in the position of the appointed escrow service, and will be released only after all required processes are done and the properly is cleared for release.

As a neutral party witnessing the purchase agreement, the escrow service must record all the agreements stipulated during the process to protect the rights of either party and assure mutual understanding.

The “truth in lending” and the “closing” statements are required by the Federal Real Estate Settlement Procedures Act. These forms should be attached completely to advice borrowers of the cost and interest rates in the transaction, especially if the purchase agreement involved loan packages.

In the case of ownership transfer, deed closing is important. However, there are different kinds of deeds: warranty deed, special warranty deed, bargain and sale deed, and quit claim deed. You should know the difference of these variations.

The earlier you get started in collecting the documents you will need, the easier your job will be throughout the process.

Consider these suggestions:

 

• Tax Documents

 
First, gather up all your tax documents from the past couple of years. Dig copies of your income tax returns and make copies of these. If you do not have copies of your previous tax payments, you may seek help from professionals.

 

• Pay Stubs

 

Start saving your pay stubs. You will probably need about three of your most recent pay stubs to prove how much you are making at this point.

 

• Bank Account Statements

 
Collect any bank account statements you have. You will need statements from the last 30 or 60 days, to determine your spending habits and how much money is coming in to your account versus the money have spent or withdrew. This will help achieve an effective balancing system. Keeping records of your savings account too is important. It will show your financial stability at the moment. 
                               

• Verify the money you are spending for your down payment

 

You need to document where your money is sourced out from, whether it comes from retirement or stock investments. Lenders want to know exactly the source of your wealth and its legality. Besides, lenders also would want to know if you will be able to pay the loan over time.

 

Buy, Sell, Rent, Invest, In Singapore

 

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

 

KF Property Network Pte Ltd
CEA Licence Number : L3008430D