The escrow holder insures 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 payments and documents, filling out required forms, and seeking out the release documents for any loans or liens that have been paid with the transaction, assuring you have a clean title to your house before the negotiated price is fully paid.
These are the legal documents that escrow companies usually look to collect:
You're ready to close when all steps are done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. You'll then receive the title to the house and the title insurance gets issued as stated in the escrow instructions.
At the close of escrow, payments are submitted in an acceptable form to the escrow. 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. 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 individual process could vary based on your lender and your escrow company.
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