When we talk about escrow as it relates to mortgages and real estate we are actually talking about two different topics that concern home buyers: the closing of the sales agreement on a House (referred to as escrow) and the mortgage escrow account (a fund set aside for ongoing expenses while the lender holds the note on your home). Let’s take a brief look at both of these concepts so you can be better prepared when you decide to buy your first home and take on a mortgage.
Escrow
Buying a home is not a easy process. It will be the most significant financial decision you will make as it is accompanied by a duty to pay your loaner within a designated number of years. It is important to observe that purchasing a house calls for particular procedures, rules and paperwork that requires to get through. Most of the real estate dealings, you will be operating with a neutral third party otherwise known as the escrow bearer or agent. What escrow agents do is to assure that the needed papers are all in order, both parties conform to the contract provisions and are protected.
Escrow agents make sure that all the documents are obtained and filed and that all conditions in the agreement are met before the sales agreement is settled. They will request a title search to make sure the house is free and clear of any liens. They are in charge of obtaining the funds from the buyer and releasing them to the vender only when the sale has been settled.
An escrow agent will never give advice to either party. They are to stay neutral. An escrow agent is to stay neutral and impartial to both purchaser and vendor. He or she may not contribute advice to both. If you suspect that your escrow agent is not being neutral you should directly inform your mortgage lender and realtor.Inform immediately your mortgage loaner if you suspect that your escrow agent is not being neurtal. They also will not provide tax advice or opinions on your mortgage. Again, they are there to make sure all the t’s are crossed and I’s are dotted - they are not there to get concerned personally in any way.They may not offer tax advice, opinions regarding your mortgage and be affected in any way personally. They are there to make sure that everything is in place.
