The escrow company is careful to assure that all terms and conditions of the seller's and buyer's agreement are reached prior to the sale being finalized. This includes receiving payments and paperwork, completing required forms, and seeking out the release documents for any loans or liens that are to be paid with the transaction, assuring you have a free title to your property before the negotiated price is fully paid.
The pieces of paperwork the escrow holder may collect include:
Closing on the home takes place when all of the procedures of the escrow are done. All outstanding payments and fees are taken and paid off at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title gets handed over to you and title insurance begins per the policies of your individual escrow process.
The escrow holder receives a payment when the closing is complete. 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 quick run-down of the escrow process. Your particular plan may vary based on your bank and your escrow company.
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