The escrow company makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finalized. This includes securing funds and certificates, finishing required forms, and seeking out the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your property before the asking price is fully paid.
Escrow agents compile the following legal documents:
Closing on the home takes place when all of the procedures of the escrow are done. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to you as buyer and correct title insurance is issued as noted in the escrow policy.
The escrow holder gets a payment when the closing is complete. 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 basics of the escrow process down, you can be a better buyer.
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