Tying up any loose ends like taking in funds, completing forms, securing the documents for loans and liens, and assuring you get a clean title to the home before your purchase gets finalized are all parts of closing in which an escrow holder is useful.
The records the escrow agent may collect include:
Closing on the home happens when all of the procedures of the escrow are finished. All outstanding payments and fees are collected and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then obtain the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. 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. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
Once you have the ABCs of the escrow process down, you can be a informed buyer.
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