The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are met in preparation of the sale being finalized.
Escrow companies compile the following documents:
Closing on the home happens when the steps of the escrow are complete. All outstanding payments and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The property's title gets handed over to you and title insurance begins per the steps of your individual escrow process.
The escrow holder receives a payment at the completion of closing. I'll keep you up-to-date on the procedure.
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 quick run-down of the escrow process. Your individual process could be unique based on your bank and your escrow holder.
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