What is Escrow?
The escrow agent makes sure that the terms and conditions of the agreement between the two parties are performed prior to the sale being finalized.
Upon completion of all portions of the escrow, closing can take place. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. You'll then secure the title to the house and the title insurance gets dispersed as noted in the escrow instructions.
When closing is finished, you'll make a payment to the escrow agent. As your real estate agent, I'll let you know what is an acceptable way of paying.
Mortgage Escrow Account
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a easy to understand guide about the escrow process. Your specific process will be slightly different depending on your lender and your escrow holder.
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