An escrow holder is used to assure your property closes on time and the closing process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it’s in escrow. An easy way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.
These are the records that escrow companies usually compile:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
You’re ready to close when each step of the done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The property’s title gets handed over to you and title insurance begins per the steps of your particular escrow agreement.
When closing is completed, you’ll submit a payment to the escrow company. As your REALTOR®, I will let you know what is an acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won’t:
Mortgage Escrow Account
A Mortgage Escrow Account is started to pay recurring fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
This is a simple outline of the escrow process. Your particular plan might be slightly different based on your lender and your escrow company.