To finalize the sale of a piece of property a neutral, third party (the escrow holder, a.k.a. escrow agent) is hired to guarantee the loan will close on time. The escrow holder guarantees that all terms and conditions of the seller's and buyer's agreement are met before the sale is finalized, this includes receiving funds and any documentation, filling out the required paper work, and obtaining the release documents for any loans or liens that have been paid off with the transaction, this assures the buyers get a clean property title once the loan is closed and funded.

Once all the required conditions of escrow have been met the loan closing can go forward. All outstanding payments and fees are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The property title is then transferred to the  new home buyer and appropriate a title insurance policy per escrow instructions.

At the close of escrow, payment of funds shall be made in an acceptable form to the escrow. As your mortgage company, we will inform you of the accepted form of payment.

Home Mortgage Escrow Account

A Home Mortgage Escrow Account will be set up to pay the ongoing costs associated with the home while there is a mortgage against it. These will include property taxes, home owners insurance and private mortgage insurance. In Most Cases the Home Mortgage Escrow Account is partially funded at the time of the closing and the home owner will then makes monthly escrow payments with their mortgage payment every month.