What You Need to Know about Escrow Accounts
Congratulations! You’re about to purchase a home and begin a new chapter in your life. One of the many things you’ll need to know about at your closing is how an escrow account works. For most homeowners, especially first-time owners, closings can present a confusing and often frustrating experience when you don’t have a handle on the real estate lingo and what exactly is going on at the closing table. As every homeowner can attest to, you’re going to be signing a volume of documents, which can be intimidating. So, you’ll want to understand exactly what you’re signing so that you don’t wonder about it later on when you go home. One of the elements to closing a real estate deal is to open escrow accounts which are typically set up by your mortgage lender, but can also be held by your title company. Here’s how:
- At the beginning of a sale, you will put down earnest money to show your “good faith” and intention to purchase the property when your mortgage comes through. This money is normally placed in an escrow account and held by your lender or a title service.
- Many lenders insist that you pay your property taxes and homeowners insurance with an escrow account to make sure that your bills will get paid. Even if your lender does not require one, you might want to consider using it because come property tax time, you don’t want to be hit with a large bill that you haven’t saved up for.
Essentially, an escrow account makes you save for money you’ll need to have on hand every year. At Title Now, LLC in Fort Lauderdale, we can handle all aspects of your real estate transaction as well as provide escrow services at your closing, not only in Fort Lauderdale but throughout Broward, Miami-Dade, and Palm Beach Counties.
How a Title Company Can Help Facilitate an Escrow Account
Title Now, LLC is a licensed and trusted title insurance company offering our services throughout the South Florida area. We provide a wealth of expertise and knowledge in a wide variety of real estate transactions, including escrow services, contract negotiation, and legal services. We are competitively priced, and our experienced processors will make your transaction flow seamlessly from beginning to end. Call us today at (954) 947-2040. Our staff is here for you 24/7 and we are pleased to offer a 24-hour turnaround time on all communications.