First, a little about "escrow". An escrow holder is used to assure your place closes on time and the process goes smoothly. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. PayPal is a good way to picture an escrow company.
The escrow holder makes sure that the terms and conditions of the agreement between the two parties are completed prior to the sale being finished.
Escrow holders want to acquire the following forms:
- Terms of sale and any seller-assisted financing
- 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
You're ready to close when each step of the complete in escrow process. All debts and fees are taken and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). The home's title goes to you and title insurance is issued per the policies of your particular escrow process.
When closing is completely finished, you'll make a payment to the escrow company. You'll know when it's time to submit the form of payment.