The escrow company makes sure that the terms and conditions of the agreement between the seller and buyer are reached in preparation of the sale being completed.
Escrow companies compile the following forms:
Upon completion of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. Title to the property is then transferred to you as new owner and related title insurance is issued as noted in the escrow policy.
The escrow agent receives a payment when the closing is complete. As your real estate agent, I'll let you know what is an acceptable way of paying.
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 plan could vary depending on your bank and your escrow holder.
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