What is Escrow?

Escrow
When you're closing on your new property, an escrow company is used to guarantee the process will close correctly and in a specific time frame. A home is said to be in escrow when in the closing transaction, payment is held by a third party on behalf of two parties (in this case, a buyer and a seller) when the exchange of money takes place. For example, in an online purchase, PayPal is the secure third party that obtains the buyer's funds, and then sends the money to the seller.

Tying up any loose ends like taking in funds, finishing forms, securing the documents for loans and liens, and assuring you a clean title to the property in preparation of your purchase gets finalized are all parts of closing in which an escrow agent is useful.

	Whether it's your first home or your next property, we'll educate you through the process. Call us at 321.293.2170 and we'll give help you purchase the home you want.

Escrow holders want to acquire the following documents: Title insurance policies Terms of sale and any seller-assisted financing Requests for payment for various services to be paid out of escrow funds Loan documents Tax statements Fire and other insurance policies

Closing on the house happens when the steps of the escrow are complete. At this time, all payments and dues for inspections, title insurance and real estate commissions are paid out. The home's title gets handed over to you and title insurance is issued per the steps of your particular escrow agreement.

When closing is completely finished, you'll submit a payment to the escrow holder. I'll keep you updated on the through the procedure.

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Petition title inquiry Comply with the bank's requirements as specified in the escrow agreement Receive payments from the buyer Prorate tax, interest, insurance and other fees according to guidelines Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer are met Disburse funds and finish instructions		Advise you - the escrow holder stays at an impartial, third-party status Give insight about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is started to make payments for recurring expenses while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

Now you know more about being in escrow. And, you can be a more informed home buyer and future homeowner.