What is Escrow?
The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are reached prior to the sale being finished.
The pieces of paperwork the escrow holder may collect include:
You're ready to close when each step of the finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The home's title goes to you and title insurance is issued per the policies of your particular escrow process.
At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your real estate agent, I'll let you know what is an acceptable way of paying.
The Escrow Holder Will:
- Write escrow instructions
- Request title search
- Meet lender's standards as specified in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to guidelines
- Record deeds and other legal documents as instructed
- Obtain title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse funds and finalize instructions
The Escrow Holder Will Not:
- Advise you - the escrow company stays a neutral, third-party status
- Dispense opinions about tax implications
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The Escrow Holder Will:
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The Escrow Holder Won't:
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Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.
