For many home buyers, escrow is an important part of the buying process. In order to properly participate in a home purchase, people need to understand how escrow relates to buying a home, and when escrow accounts might be used after closing.
Escrow Basics
The essential premise of escrow is to place a neutral third party in a position to handle monetary concerns between buyers and sellers. In a real estate transaction, a prospective buyer will make a purchase offer and present it to the seller. If the seller accepts the offer, the buyer often provides some funds as earnest money. This money may be used toward a down payment or other costs, or forfeited if the buyer violates terms of the purchase agreement. All money paid into the escrow
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