The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized. This includes getting payments and certificates, filling out required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a clean title to your house before the asking price is fully paid.
The pieces of paperwork the escrow holder may collect include:
Closing on the property happens when the steps of the escrow are finished. At this time, all payments and dues for inspections, title insurance and real estate commissions are taken. Title to the house is then given to you as new owner and correct title insurance is issued as outlined in the escrow policy.
The escrow holder receives a payment when the closing is complete. You'll know when it's time to submit the form of payment.
A Mortgage Escrow Account is used to pay recurring fees 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 smarter home buyer and future homeowner.
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