Brenda Regan Associate Broker
Fax : 269-983-6605
Address: 3665 S. Lakeshore Dr., St. Joseph, MI 49085
How Escrow Works
What is Escrow?
Let's talk about "escrow". To close the sale of a house, a neutral, third party (the escrow company) is employed to assure the process will close appropriately and on time. Escrow holders hold money for "safe-keeping" in a deal between a buyer and seller. An everyday way to understand what an escrow company does is to compare it to PayPal for Internet purchases.
The escrow agent makes sure that all terms and conditions of the seller's and buyer's negotiated agreement are met prior to the sale being completed. This includes getting funds and paperwork, completing required forms, and getting the release documents for any loans or liens that are to be paid with the transaction, assuring you have a clean title to your property before the asking price is fully paid.
The certificates the escrow company may obtain include:
- 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
Closing on the property happens when the steps of the escrow are done. All expenses like title insurance, inspections and real estate commissions are paid. The house's title gets transferred to you and title insurance begins per the steps of your particular escrow agreement.
When closing is done, you'll submit a payment to the escrow agent. I'll keep you informed on the procedure.
The Escrow Holder Will:
The Escrow Holder Won't:
Mortgage Escrow Account
Creating a Mortgage Escrow Account helps keep track of on-going expenses while there's a loan on your house. Though most home buyers make payments via their monthly mortgage payment, Escrow Accounts are deposited into at closing as well.
Once you're familiar with the escrow process, you can be a confident buyer