The escrow holder makes sure that all terms and conditions of the seller's and buyer's contract are reached prior to the sale being completed. This includes receiving funds and certificates, filling out required forms, and obtaining the release documents for any loans or liens that are to be cleared with the transaction, assuring you have a free title to your place before the agreed upon price is fully paid.
The documents the escrow agent may obtain include:
You're ready to close when every step is done in escrow process. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). You'll then obtain the title to the house and the title insurance gets dispersed as outlined in the escrow instructions.
At the close of escrow, in an acceptable form to the escrow. I'll keep you informed on the procedure.
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 quick run-down of the escrow process. Your specific process might vary based on your lender and your escrow holder.
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