First, a little about "escrow". When you're closing on your new property, an escrow holder is used to assure the process will close correctly and in a specific time frame. A home is said to be in escrow when in the closing process, funds is held by a third party on behalf of two parties when the transaction is taking place. For example, in a Web auction, PayPal is the reliable third party that holds the buyer's funds, and then disburses the payment to the seller.
Settling the last details like obtaining funds, signing forms, obtaining the documents for loans and liens, and making sure you get a clean title to the home in preparation of your purchase gets finalized are all parts of closing in which an escrow agent is useful.
Escrow agents compile the following pieces of paperwork:
- 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
You're ready to close when each step of the complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The house's title goes to you and title insurance is issued per the steps of your individual escrow agreement.
When closing is done, you'll pay the fees to the escrow agent. As your REALTOR, I'll let you know what is an acceptable way of paying.