First, a little about "escrow". An escrow company is used to assure your place closes on time and the process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it's in escrow. PayPal is a good example of an escrow company.
Settling the last details like obtaining funds, completing forms, obtaining the documents for loans and liens, and making sure you get a spotless title to the home before your purchase gets finalized are all parts of closing in which an escrow company is useful.
The records the escrow company may collect include:
- Requests for payment for various services to be paid out of escrow funds
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
Upon completion of all portions of the escrow, closing can take place. All expenses like title insurance, inspections and real estate commissions are paid. The property's title goes to you and title insurance begins per the policies of your individual escrow agreement.
When closing is completed, you'll pay the fees to the escrow company. As your REALTOR, I'll inform you of the acceptable way of paying.