Escrow on a purchase
To finalize the sale of the home a neutral, third party (the escrow holder, a.k.a. escrow agent) is engaged to assure the transaction will close properly and on time. The escrow holder insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the seller and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow.

Mortgage Escrow Account on a purchase and refinance

A Mortgage Escrow Account is established at closing to pay on-going expenses . These expenses include property taxes, home insurance, mortgage insurance, and other escrow items.When a loan to value ratio exceeds 80 %, the lender requires mandatory escrow of taxes and insurance.This is so the property taxes are paid on time and this avoids a potential tax lien that would effect the lenders lien position.