Tying up any loose ends like taking in funds, completing forms, getting the documents for loans and liens, and making sure you get a clean title to the home before your purchase gets finalized are all parts of closing in which an escrow company is useful.
The documents the escrow company may secure include:
You're ready to close when all steps are done in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. You'll then obtain the title to the home and the title insurance gets issued as outlined in the escrow instructions.
When closing is done, you'll pay the fees to the escrow agent. You'll know when it's time to submit the form of payment.
A Mortgage Escrow Account is used to make payments for on-going expenses while there is a loan on the house. 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 rules of the escrow process down, you can be a better buyer.
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