First, a little about "escrow". When you're closing on your new house, an escrow agent is used to insure the process will close appropriately and in a certain amount of time. A home is said to be in escrow when in the closing transaction, payment is secured by a third party on behalf of two parties when the transaction is taking place. An everyday way to understand the concept of what an escrow company does is to compare it to PayPal for Internet purchases.
Tying up any loose ends like taking in funds, completing forms, obtaining the documents for loans and liens, and making sure you get a spotless title to the home prior to your purchase gets finalized are all part of the job of the escrow company.
These are the records that escrow holders usually compile:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
You're ready to close when each step of the done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The home's title is given to you and title insurance begins per the steps of your particular escrow process.
When closing is completely finished, you'll make a payment to the escrow agent. I'll keep you informed on the procedure.