The escrow holder makes sure that all terms and conditions of the seller's and buyer's contract are completed prior to the sale being finished. This includes getting funds and certificates, signing required forms, and getting the release documents for any loans or liens that were paid with the transaction, assuring you have a clear title to your house before the purchase price is fully paid.
The pieces of paperwork the escrow holder may collect include:
Upon finishing of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. The property's title goes to you and title insurance is issued per the steps of your particular escrow agreement.
When closing is completed, you'll pay the fees to the escrow agent. 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 basics of the escrow process down, you can be a more assured buyer.
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