Escrow Service Questions Answered for the First-Time Home Buyer!

Arrowhead Title is the best title agency at the Lake of the Ozarks, and one of the reasons why is the great escrow services that we provide. As a first-time home buyer, you may not know exactly how escrow services work, or even what they are. That is why we are here for you! Keep reading to get the answers to common questions first time home buyers need to know about escrow services.

What Are Escrow Services?

Escrow settlement services help facilitate real estate transactions and are provided by your title company. (That's us!) During escrow settlement, your agent should provide the following services:

  • Handling the deposit and disbursement of funds
  • Calculating and adjusting the amounts due for taxes, insurance, rents, etc.
  • Responding to the lender's requirements
  • Securing a title insurance policy
  • Obtaining approvals of reports 
  • Processing and coordinating the documents
  • Recording deed and loan documents
  • Coordinating the signing of loan and closing documents
  • Keeping all parties informed on the escrow account's progress
  • Preparing the final statement that outlines funds received and to be disbursed 

What is an Escrow Account?

Escrow accounts - or reserve accounts as some call them - are set up by a third-party to handle payments between the buyer and lender of a real estate transaction. These accounts help protect the lender's investment in a buyer by loading the account ahead of time. It also is helpful to the buyer because they only have to make one payment to the escrow account, rather than trying to handle separate payments to the mortgage lender, insurance companies, etc. Escrow accounts can also be used to hold funding for an incomplete home project that the sellers have agreed to cover.

Where Do the Funds Come From?

At the initial settlement of the real estate transaction, the account will be funded with prorated insurance, tax, and other relevant payments. Plan ahead for this amount so you are not surprised at your closing appointment. After you close on your new home, the account will be reloaded for the next year's bills with regular monthly payments that are determined on your final paperwork. Keep these documents for your records to ensure all of your bills are being paid properly.

What Does the Account Pay For? 

Escrow accounts typically cover payments for the mortgage payment, real estate/property taxes, homeowner's insurance, and private mortgage insurance. The third-party responsible for the escrow account then disburses those payments to the appropriate parties, ensuring that all payments are covered and made on time.

Best Escrow Services at the Lake

When you are making a major investment, like buying your first home, you want to make sure you are working with businesses that have your best interest in mind and that will take care of you and your transaction with accuracy and integrity. That is Arrowhead Title. We will always put you first and help make sure the closing process goes as smoothly as possible. Contact us if you have any questions leading up to your closing and we will be more than happy to help!

The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049


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