Let's talk about "escrow". An escrow company is hired to assure your place closes on time and the closing process goes smoothly. A property is said to be in escrow when in the closing process, payment is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. A simple way to understand the concept of what an escrow company does is to compare it to PayPal for online purchases.
Tying up any loose ends like obtaining funds, signing forms, getting the documents for loans and liens, and making sure you get a spotless title to the property prior to your purchase gets finalized are all part of the job of the escrow holder.
Escrow agents want to obtain the following records:
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
Upon finishing of all portions 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 home and the title insurance gets issued as outlined in the escrow instructions.
When closing is completely finished, you'll pay the fees to the escrow agent. As your REALTOR, I'll inform you of the acceptable way of paying.