Escrow is a stage in the process that begins immediately after both parties agree to and sign the offer contract.
In this stage, we are utilizing a third party who is unbiased and trusted that will assure that both the buyer and the seller have met all of the obligations that they mutually agreed upon.
In other words, they will assure that all of the terms and conditions are met and the transaction closes properly and on time.
The Escrow Holder Will:
The Escrow Holder Won’t:
Upon completion of all of the instructions in the escrow, the closing will take place. During the closing, all outstanding payments and fees are collected and paid. This will include expenses such as title insurance, inspections, real estate commissions, transfer of funds from the lender and your down payment.
The title of the property is then transferred from the seller to the buyer and all appropriate documentation is distributed to both parties as outlined in the escrow instructions.
For both parties, this stage can bring up a lot of anxiousness because we are so close to the finish line. As your mortgage professional, we have great relationships with the escrow companies and will keep you well informed during the home stretch of your purchase.
Mortgage Escrow Account
A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.