What Is Escrow?

One of the most significant and most essential purchases any individual will make in life is buying a home. It often requires a considerable sum of money in the form of mortgage payments, and because of this, the buyer or seller involved needs a safe, tested and secure way via which they can carry out such delicate transactions. To make sure there is a stress-free transaction in the home sale and Mortgage transfer, there is the need for a lender to open an account for the client looking to buy the house. This account is called Escrow.

What Is An Escrow Account?

An escrow is simply a place or an individual that holds all assets involved in the sale of a house (or any other property). It is carried out by a third party, like a mortgage company, which secures and holds the assets until all the payment terms and the entire terms of the home sale agreement have been carried out. It will be unwise for buyers to transfer over all the cash to a seller without getting the deed of the house in hand and it would also be unwise for the seller to hand over the deed to the buyer without being paid all the money the house is worth. An escrow provides a haven to keep all assets involved in the transactions until all requirements from both sides of the transac