Are you currently in the process of buying a home, and curious about learning more about the escrow process? When you buy a home, it involves several steps that can be complex for a homebuyer, including the last step, which is the escrow process. If you are buying a property in Mount Pleasant, South Carolina, and want to better understand the steps involved with the transaction, Lucey Mortgage Corporation can help. Read on to learn about what happens during the escrow process.
How Does Escrow Work?
When you put an offer down on a home and it is accepted by a seller, your agreement is then placed in escrow. Escrow basically is a financial structure where a third party stores and oversees a payment of funds between two separate parties that are completing a transaction in order to keep the investment of both parties protected. The funds and documents are held in escrow to ensure that each party’s obligations are upheld while the buyer and seller are meeting the conditions of the purchase and finalizing the details. An escrow officer safeguards and allocates the money that is involved in the transaction until both parties come to an agreement.
Since such a large amount of funds are exchanged during the transaction of a home purchase, and in order to get the funding approved, many specific agreements must be made. The escrow process guarantees that the homebuyer has enough money to complete the purchase and that the money is given to the seller when the title is transferred over. Additionally, it guarantees that the seller is selling the home legitimately and has resolved any issues with the home so the buyer can avoid any fraudulent circumstances. Ultimately, the main purpose of escrow is to ensure that the agreements made by both parties have been met.
What Happens During the Escrow Process?
Escrow starts when the seller and buyer agree to the terms of the transaction. Then, each party submits documents, money, and property into the escrow account. The third party escrow company, (which is neutral), will then notify each party when the documents, money, and property have been delivered to each party satisfactorily. After each party has had time to review the terms and each is satisfied with the deal, an agreement can be reached with both parties, the funds can be released and the deal becomes finalized.
Get Help Understanding the Escrow Process
Buying your own home is an exciting, but sometimes complex undertaking, and the escrow process helps to ensure that your funds are protected during your transaction. If you are buying a home in Mount Pleasant, South Carolina, and have questions about the steps in the process, contact Lucey Mortgage Corporation today for a consultation.