The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being completed. This includes securing funds and certificates, completing required forms, and obtaining the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your house before the purchase price is fully paid.
These are the documents that escrow companies usually compile:
You're ready to close when every step is done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as buyer and related title insurance is issued as outlined in the escrow instructions.
When closing is completed, you'll pay the fees to the escrow agent. You'll know when it's time to submit the form of payment.
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. 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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