The escrow holder insures that all terms and conditions of the seller's and buyer's contract are met prior to the sale being finished. This includes getting monies and certificates, 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 free title to your property before the agreed upon price is fully paid.
These are the records that escrow agents usually compile:
Closing on the home takes place when all of the procedures of the escrow are finished. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the house is then given to you as new owner and correct title insurance is issued as noted 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. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
Once you have the ABCs of the escrow process down, you can be a more assured buyer.
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