In Escrow? Here’s What to Expect
Escrow is when money is held by a third party as a transaction is ongoing. While undertaking a real estate transaction you usually make an offer on a house in which you like. The process of making an offer usually begins by you making an offer whereby you write a check which has a money back guarantee and then the check is placed in escrow.
Making an Offer
Once you have placed an offer by writing a cheque it is placed in escrow. This means that the money does not go to the seller but a third party who holds the money in escrow on behalf of both parties. While this money is in escrow you are negotiating with the seller of the house until the deal is closed. Neither you nor the seller can touch the money until the deal is closed.
As can be concluded in escrow you should expect such a process to occur and it is done to ensure that each party gets what they deserve at the essential time in the whole house buying process.
When Dealing with Lenders
When you choose to take a mortgage in the process of buying a house there are various steps which you shall undertake with the assistance of a mortgage officer. When the mortgage-officer uses terms such as escrow they are referring to funds which they have withheld to help in payment of property taxes and homeowners insurance.
The individuals who offer the mortgage usually collect the loan repayment which you are to pay together with the property taxes and homeowners insurance so that they are able to pay them on time. They do this because they have a mutual interest in ensuring those payments are made on time when they are due.
The Closing Process
When you conclude the process of buying a house the escrow officer will oversee the conclusion of the escrow process by recording of deeds, exchanging the needed funds to the respective party and ensuring all the requirements of the transaction are met.
For more on this subject read our recent blog, “Tips For Selling Your Luxury Home.”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.