When purchasing a home you will need to pick escrow officer to help you during the process. Do you know what an escrow officer does? Or why you need one? Here is a breakdown of what escrow is and why they are so important in the purchase process.
Escrow is the deposit of funds, a deed and other items to a neutral third party for the purpose of completing a purchase. They help facilitate the purchase transaction by managing and overseeing the disbursement of funds and necessary documents. They are there to make sure that no funds or property will change hands until all instructions for the transaction have been completed.
What role do you have in the transaction?
You must read and understand the escrow instructions, agreements, and the terms and conditions related to the purchase of the home. It is best to respond promptly to any correspondence regarding the transaction as many items are very time sensitive. If you have any of you have questions regarding the loan and or its terms be sure to direct those questions towards to your mortgage loan officer. Towards the end of the process you will review the closing statement that will cover items like purchase price, funds that will be deposited or credit to your account, costs of all service, payoffs on existing encumbrances or liens, and the funds required to close the transaction. Be sure to thoroughly examine the closing document and ask any questions that you have. Once the loan has funded and recorded make sure to store the closing statement in a safe place along with the other escrow documents for tax purposes.
If you find yourself unsure of the best company or escrow officer to go with your mortgage professional will be able to help you find the right fit.