The escrow company is careful to assure that all terms and conditions of the seller's and buyer's contract are performed prior to the sale being finalized. This includes receiving funds and paperwork, filling out required forms, and seeking out the release documents for any loans or liens that were cleared with the transaction, assuring you have a clear title to your property before the negotiated price is fully paid.
The documents the escrow agent may secure include:
You're ready to close when every step is finished in escrow process. At this time, all payments and dues for inspections, title insurance and real estate commissions are collected. You'll then receive the title to the home and the title insurance gets dispersed as noted in the escrow instructions.
When closing is finished, you'll pay the fees to the escrow holder. As your real estate agent, I'll inform you of the acceptable way of paying.
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 easy to understand guide about the escrow process. Your individual process will be unique based on your bank and your escrow agent.
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