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 on-going expenses while the loaner 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
Purchasing a home is not a simple process. It will be the most significant financial decision you will have as it is followed by a obligation to pay your loaner inside a specific number of years. It is important to note that purchasing a house calls for certain procedures, rules and paperwork that requires to get done. In almost all real estate dealings you will be Dealing with a neutral third party called the escrow bearer (or escrow agent). What escrow agents do is to ensure that the required documents are all in order, both parties comply with the contract provisions and are protected.

Escrow agents make certain that all the documents are taken and filed and that all conditions in the agreement are met before the sales agreement is finalized. They will call for a title research to make certain the home is free and clear of any liens. They facilitate in the reception of payments and turning them over to the seller only in the event of actual sale.

An escrow agent will never present advice to either party. They are to remain neutral.An escrow agent is to stay neutral and impartial to both buyer and seller. He or she may not give advice to both. If you suspect that your escrow agent is not being neutral you should right away inform your mortgage lender and realtor.Inform right away 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 certain all the t’s are crossed and I’s are dotted - they are not there to get included personally in any way.They may not provide tax advice, opinions regarding your mortgage and be affected in any way personally. They are there to make certain that everything is in order.

Escrow Agent