The escrow agent makes sure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finished. This includes securing funds and certificates, filling out required forms, and getting the release documents for any loans or liens that have been paid off with the transaction, assuring you have a free title to your home before the final price is fully paid.
The pieces of paperwork the escrow agent may collect include:
Closing on the house happens when the steps of the escrow are finished. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as new owner and related title insurance is issued as noted in the escrow instructions.
When closing is finished, you'll make a payment to the escrow holder. As your agent, I'll let you know what is an acceptable way of paying.
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 more confident home buyer and future homeowner.
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