Written by Tara Dixon
We can all agree that buying and/or selling a house can be a complicated process EVER! From buying and selling a home, from the offer, to the home inspection, and getting that mortgage approval! ITS 👏🏾 A 👏🏾 PROCESS 👏🏾
It can also be very hard to understand as well. Especially the understanding of ESCROW! This occurs between the time the seller accepts the offer and the buyer gets the keys to the new house. Escrow is the period of time where either the attorney or title company holds money in a bank for closing. First part is actually getting your offer accepted. Then their is the process of opening the account in which deposits and other payments will be made and held in. The buyer must first wait for the approval from the bank to secure finances and then the attorney or title company deposit money, if you are the buyer your money, which can be the down payment, taxes, insurance, title, mortgage tax, etc. Inspection and appraisal are made at this time. If there is anything that is an alert from the reports, the buyer CAN walk away from an agreement if their conditions are NOT met or there is a problem with the property.
When you are talking with your mortgage lender, you will hear about escrow. They might talk about an “escrow” or “impound” account or “reserves.” But no worries it all means the same thing. They are funds to be held by the lender to make all payments for the homeowners insurance and also the property taxes. The Lenders will then collect them monthly along with your loan payment and then pay the tax and the insurance bills when they need to be paid. This is because your lender has a vested interest in making sure those payments are made! And finally the closing!!!
Now the “closing of escrow.” Is when your purchase is completed. An “escrow officer” will look through all of the finalized paperwork and they will handle the exchange of all the funds and the deeds on file. This person, mostly an attorney, will then ensure that all of the money is properly disbursed and that all of the documents are signed and recorded, and that all necessary conditions are met before closing the escrow! 🎉🎉🎉🎉🎉🎉🎉🎊🎊🎊🎊🎊🎊👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾