The escrow holder insures that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finalized. This includes securing payments and documents, finishing required forms, and seeking out the release documents for any loans or liens that were paid off with the transaction, assuring you have a clean title to your place before the asking price is fully paid.
These are the records that escrow agents usually compile:
Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then receive the title to the property and the title insurance gets dispersed as outlined in the escrow instructions.
When closing is done, you'll submit a payment to the escrow holder. As your real estate agent, I'll let you know what is an acceptable form of payment.
A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Now you know more about being in escrow. And, you can be a better informed home buyer and future homeowner.
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