The escrow company is careful to assure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finalized. This includes receiving monies and paperwork, finishing required forms, and obtaining the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clear title to your place before the asking price is fully paid.
These are the legal documents that escrow agents usually compile:
Closing on the property takes place when the steps of the escrow are complete. All expenses like title insurance, inspections and real estate commissions are paid. You'll then receive the title to the home and the title insurance gets dispersed as agreed upon in the escrow instructions.
When closing is in it's last step, you'll pay the fees to the escrow company. I'll keep you informed on what comes next.
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
This is a simple outline of the escrow process. Your specific methods could vary depending on your bank and your escrow holder.
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