The escrow company generally serves as a neutral intermediary between all parties involved in a real estate or mortgage transaction.
These parts can include:
- insurance agents
A home loan generally involves a great deal of paperwork. This is necessary to protect all parties involved, including buyers, sellers, lenders, and others.
The escrow agent also handles the transfer of money between the parties. A lender will send money to an escrow account. If it is a refinance to collect equity capital, the escrow agent will deduct the applicable fees owed to other parties and pay the remainder to the borrower.
If the transaction is a real estate purchase, the escrow agent will receive money from the lender, pay the existing mortgages and closing costs, collect any deposit from the buyer, and deliver the remainder to the lender as proceeds of the sales.
After any transaction, the relevant public records are updated to reflect the ownership of a property and the links it contains.
It is critical work that requires meticulous record keeping.
How the Trust Affects You
Escrow fees are typically around $ 500- $ 1500, depending on the size of the loan. The amount of the escrow fee may change based on the amount of the loan or transaction.
Purchases for trust services
The escrow service is generally chosen by the real estate agents in the case of a real estate purchase and the lender or mortgage broker in the case of a refinance.
Professionals who have made a lot of offers often get a better price per offer from an escrow company, which, in turn, can pass on the savings to you.
You can ask how the escrow agent is selected and find out how their rates compare.