Escrow - Now What?
If you're in the process of buying a home, you've probably heard the term "escrow" thrown around a lot. But what exactly is escrow, and what happens after you enter into it? In this article, we'll walk you through the escrow process and what you can expect once you're in it.
Escrow is essentially a third-party account that is used to hold onto funds and documents during a real estate transaction. The purpose of escrow is to protect both the buyer and the seller, ensuring that neither party is cheated out of their money or property.
What Happens During Escrow?
Once you've entered into escrow, there are a few key things that will happen. First, you'll need to provide the escrow company with any required documentation, such as a copy of your purchase agreement, your loan documents, and your insurance policy.
Once the escrow company has received all of the necessary documentation, they'll review it to ensure that everything is in order. They'll then prepare a statement that outlines the costs associated with the transaction, such as your down payment and closing costs.
Next, you'll need to deposit the funds for the transaction into the escrow account. This is typically done via wire transfer or certified check. Once the funds have been deposited, the escrow company will hold onto them until the transaction is complete.
Closing the Transaction
Once all of the necessary steps have been taken and the transaction is ready to close, the escrow company will distribute the funds to the appropriate parties. This typically includes paying off the seller's mortgage, paying any closing costs, and disbursing the remaining funds to the seller.
Entering into escrow can be a confusing process, but it's an important step in any real estate transaction. By understanding what to expect during escrow, you can ensure that the process goes smoothly and that you're protected throughout the transaction.
We hope that this article has been helpful in explaining the escrow process to you. If you have any further questions or need assistance with your real estate transaction, don't hesitate to reach out to our team of experts.