What Exactly is Escrow?
An escrow holder ensures that your property transaction closes on time and that the process goes smoothly. When funds are held by a third party during a transaction between a buyer and seller, this is referred to as being "in escrow." A simple way to understand the role of an escrow company is by comparing it to using PayPal for online purchases.
The escrow holder’s job is to make sure that the terms and conditions agreed upon by both the buyer and seller are met before the sale is finalized. Typically, escrow companies handle the following records:
You’re ready to close when all steps of the escrow process are completed. This includes paying all expenses, such as title insurance, inspections, and real estate commissions. The property title is then transferred to you, and title insurance takes effect according to your escrow agreement.
Once closing is finalized, you’ll make a payment to the escrow company. As your REALTOR®, I will inform you of the acceptable forms of payment.
The escrow holder’s job is to make sure that the terms and conditions agreed upon by both the buyer and seller are met before the sale is finalized. Typically, escrow companies handle the following records:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Payment requests for various services from escrow funds
You’re ready to close when all steps of the escrow process are completed. This includes paying all expenses, such as title insurance, inspections, and real estate commissions. The property title is then transferred to you, and title insurance takes effect according to your escrow agreement.
Once closing is finalized, you’ll make a payment to the escrow company. As your REALTOR®, I will inform you of the acceptable forms of payment.
WAIT...There's 1 more thing I should mention...
There's also a Mortgage Escrow Account
A Mortgage Escrow Account is set up to cover recurring expenses while the home loan is active. Typically, this account is partially funded at closing, and the homebuyer continues to contribute through their monthly mortgage payments.
This is a basic overview of the escrow process, though your specific plan may vary depending on your lender and escrow company.
If you have any questions, I'm here to help! Feel free to call or message for all inquiries.
This is a basic overview of the escrow process, though your specific plan may vary depending on your lender and escrow company.
If you have any questions, I'm here to help! Feel free to call or message for all inquiries.
