4 Important FAQs About Escrow Services!
Closing on a home is a complicated process. If you aren't familiar with the process, it can be difficult to understand the terminology and certain common procedures. Arrowhead Title's experts are there for you throughout the process to help you understand every step and feel more prepared. We have the best escrow services at the Lake of the Ozarks, and we are happy to help be your guide. Read on to learn more about escrow accounts and what we offer as part of our escrow settlement services.
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.
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.
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.
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:
It's important to work with a company you can trust, as they will be handling a large amount of money and complicated transactions on your behalf. At Arrowhead Title, we have your best interests at heart. We pride ourselves on our accuracy and integrity. Choose Arrowhead Title for the best escrow services at the Lake of the Ozarks!
The Lake of the Ozarks' Most Trusted Title Company
750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049
What is the Purpose of 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.
What Payments are Included?
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.
How are Escrow Accounts Funded?
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 Do Escrow Settlement Services Include?
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
Escrow Services at Lake of the Ozarks
It's important to work with a company you can trust, as they will be handling a large amount of money and complicated transactions on your behalf. At Arrowhead Title, we have your best interests at heart. We pride ourselves on our accuracy and integrity. Choose Arrowhead Title for the best escrow services at the Lake of the Ozarks!
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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