The escrow company insures 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 records, finishing required forms, and obtaining the release documents for any loans or liens that have been paid with the transaction, assuring you have a clear title to your place before the agreed upon price is fully paid.
Escrow holders want to obtain the following pieces of paperwork:
You're ready to close when every step is finished in escrow process. All debts and fees are taken 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 appropriate title insurance is issued as outlined in the escrow instructions.
At the close of escrow, payments are submitted in an acceptable form to the escrow. I'll keep you updated on the procedure.
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your individual plan will be unique based on your lender and your escrow holder.
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