Don't let real estate industry jargon prevent you from becoming a homeowner. I can help you work your way through the process. Call me at 763-689-5343 and I'll give you more information.
First, a little about "escrow". An escrow holder is used to assure your home closes on time and the money exchanging part of closing goes smoothly. A home is said to be in escrow when in the closing transaction, money is secured by a third party on behalf of a buyer and a seller when the exchange of money takes place. An easy way to think of what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow company is careful to assure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being finalized. This includes securing funds and records, filling out required forms, and seeking out the release documents for any loans or liens that were paid off with the transaction, assuring you have a clean title to your place before the asking price is fully paid.
These are the documents that escrow holders usually look to collect:
Upon finishing of all instructions of the escrow, closing can take place. All debts and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the home is then transferred to you as buyer and correct title insurance is issued as outlined in the escrow policy.
When closing is in it's last step, you'll pay the fees to the escrow agent. As your real estate agent, I'll let you know what is an acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won't:
Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Usually, the home buyer makes a payment at closing and also makes regular deposits through their monthly mortgage payment to fund the Escrow Account.
Once you have the basics of the escrow process down, you can be a informed buyer.
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