The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finalized. This includes getting payments and paperwork, signing required forms, and obtaining the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your home before the agreed upon price is fully paid.
The documents the escrow agent may collect include:
You're ready to close when all steps are finished in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. You'll then obtain the title to the home and the title insurance gets dispersed as agreed upon in the escrow instructions.
The escrow agent gets a payment at the completion of closing. 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. 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 plan will vary depending on your bank and your escrow holder.
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