The escrow agent is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being finalized. This includes getting funds and paperwork, finishing required forms, and seeking out the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a free title to your house before the negotiated price is fully paid.
The documents the escrow agent may secure include:
Upon finishing of all instructions of the escrow, closing can take place. 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 home and the title insurance gets dispersed as agreed upon in the escrow instructions.
At the close of escrow, fees are paid in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable form of payment.
A Mortgage Escrow Account is established to pay rolling expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.
Once you have the rules of the escrow process down, you can be a more assured buyer.
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