Let's talk about "escrow". An escrow agent is hired to assure your place closes on time and the transaction goes smoothly. When payment is held by a third party in a transaction between a buyer and a seller, it's in escrow. For example, in a Web auction, PayPal is the neutral third party that obtains the buyer's money, and then disburses the funds to the seller.
Settling the last details like obtaining funds, finishing forms, getting the documents for loans and liens, and making sure you get a clear title to the property before your purchase gets finalized are all parts of closing in which an escrow holder is useful.
Escrow agents want to acquire the following forms:
- Fire and other insurance policies
- 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
Upon finishing of all portions of the escrow, closing can take place. All payments owed and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The house's title goes to you and title insurance is issued per the policies of your individual escrow agreement.
When closing is done, you'll make a payment to the escrow agent. As your REALTOR, I'll let you know what is an acceptable way of paying.