What is Escrow?

Escrow
An escrow agent is hired to assure your house closes on time and the closing process goes smoothly. A house is said to be in escrow when in the closing process, money is secured by a third party on behalf of two parties (in this case, a buyer and a seller) when the transaction is taking place. For example, in an online purchase, PayPal is the neutral third party that obtains the buyer's money, and then sends the funds to the seller.

The escrow holder makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are reached prior to the sale being completed. This includes receiving monies and paperwork, filling out required forms, and obtaining the release documents for any loans or liens that were cleared with the transaction, assuring you have a free title to your house before the purchase price is fully paid.

	Purchasing a house for the first time can be confusing. Let us help you. E-mail us at ed@eddwyerrealtor.com to get some free information.

The records the escrow agent may obtain include: 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

You're ready to close when every step is finished in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The home's title gets handed over to you and title insurance begins per the policies of your individual escrow process.

At the close of escrow, in an acceptable form to the escrow. As your real estate agent, I'll inform you of the acceptable form of payment.

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Petition title search Comply with lender's requirements as written in the escrow agreement Receive funds from the buyer Prorate interest, insurance, tax and other payments according to instructions Record deeds and other documents as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer have been finished Disburse payments and finish instructions		Tell you what's best - the escrow holder must stay at a fair, third-party status Dispense opinions about the outcome of your taxes

Mortgage Escrow Account

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.

Once you have the rules of the escrow process down, you can be a better buyer.