The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being completed.
These are the legal forms that escrow holders usually compile:
Closing on the property happens when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. Title to the house is then transferred to you as new owner and appropriate title insurance is issued as noted in the escrow policy.
At the close of escrow, payments of funds are made in an acceptable form to the escrow. You'll know when it's time to submit the form of payment.
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your specific methods may be slightly different depending on your lender and your escrow agent.
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