The escrow company makes sure that all terms and conditions of the seller's and buyer's contract are met prior to the sale being completed. This includes getting monies and paperwork, completing required forms, and seeking out the release documents for any loans or liens that were paid off with the transaction, assuring you have a clean title to your house before the negotiated price is fully paid.
Escrow companies collect the following pieces of paperwork:
Upon completion of all instructions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. You'll then obtain the title to the house and the title insurance gets dispersed as agreed upon in the escrow instructions.
When closing is completely finished, you'll submit a payment to the escrow company. You'll know when it's time to submit the form of payment.
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 easy to understand guide about the escrow process. Your specific process might be different based on your bank and your escrow agent.
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