The escrow company insures that all terms and conditions of the seller's and buyer's negotiated agreement are completed prior to the sale being completed. This includes securing funds and records, completing required forms, and getting the release documents for any loans or liens that are to be paid off with the transaction, assuring you have a clear title to your home before the negotiated price is fully paid.
The certificates the escrow company may secure include:
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. Title to the property is then transferred to you as buyer and correct title insurance is issued as outlined in the escrow instructions.
When closing is completely finished, you'll submit a payment to the escrow agent. You'll know when it's time to submit the form of payment.
A Mortgage Escrow Account is used to make payments for rolling fees while there is a loan on the house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
This is a quick run-down of the escrow process. Your particular plan will be different depending on your bank and your escrow agent.
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