The escrow agent makes sure that the terms and conditions of the agreement between the seller and buyer are completed prior to the sale being finished.
Escrow agents want to obtain the following pieces of paperwork:
Upon finishing 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 paid out. Title to the property is then transferred to you as new homeowner and appropriate title insurance is issued as outlined in the escrow policy.
The escrow company gets a payment at the completion of closing. You'll know when it's time to submit the form of payment.
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
This is a simple outline of the escrow process. Your specific methods will be slightly different depending on your bank and your escrow agent.
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