The escrow company insures that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being completed. This includes securing funds and paperwork, completing required forms, and seeking out the release documents for any loans or liens that were paid with the transaction, assuring you have a clear title to your place before the negotiated price is fully paid.
The documents the escrow agent may obtain include:
Upon completion of all instructions of the escrow, closing can take place. At this time, all payments and fees for inspections, title insurance and real estate commissions are taken. Title to the home is then transferred to you as now current homeowner and correct title insurance is issued as noted in the escrow policy.
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.
A Mortgage Escrow Account is used to pay on-going expenses while there is a loan on the 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 individual methods may be slightly different depending on your lender and your escrow company.
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