Home Buying: The Basics of Escrow
The multitude of steps and terminology involved in buying a house can be overwhelming. While a good realtor will walk you through everything you need to know, it helps to have a firm understanding of some things before you get pre-approved and start making offers. Learn more about escrow below.
You may want to investigate more Buyer articles meant to save you time and money.
One key component involved in nearly every sale is the escrow, or impound account. This is an account set up by your mortgage lender to pay certain property-related expenses on your behalf (property taxes and homeowner’s insurance).
Many (mortgage) lenders require an escrow account, to insure that the property is not at risk. The fees can…