Answering Escrow Questions for the First-Time Home Buyer

The best title agency at the Lake of the Ozarks, Arrowhead Title provides the utmost closing and escrow services for all your real estate needs at the Lake. We are dedicated to our community and the clients we serve and as such are here today to tell first-time home buyers what they need to know about escrow services at the Lake of the Ozarks.


What Are Escrow Services?

Firstly, let's start by covering what escrow services actually are. Escrow settlement services help facilitate transactions. They are provided by a title company in the purchase/sale of real estate. Here is what you can expect those services to include:

  • Handling the deposit and disbursement of funds
  • Calculating and adjusting the amounts due for taxes, insurance, rents, etc.
  • Securing a title insurance policy
  • Recording deed and loan documents
  • Coordinating the signing of loan and closing documents
  • Preparing the final statement that outlines funds received and to be disbursed 

Escrow Account? What's That?

Also known as "reserve accounts," are set up by third parties to handle payments between the buyer and lender in a real estate transaction. This centralizes the funds to do two things, protect the lender's investment in a buyer, as well as providing convenience to the buyer by making one payment to the account instead of paying all interested parties during the transaction. These accounts can also be used to hold funds for an incomplete home project until it is satisfactorily complete.

What Funds These Accounts?

Escrow accounts are funded at the initial settlement of the transaction. Items such as prorated insurance, tax, and other relevant payments make up the account and then are reloaded to ensure next year's bills tax, insurance, and other payments through monthly payments throughout the year. These figures will be on your closing documents, so be sure to read them thoroughly - or just ask us if you have any questions.

What Does it Pay For?

These accounts cover payments from the mortgage, real estate/property taxes, homeowner's insurance, private mortgage insurance, and homeowners association fees whenever applicable. An account is set up to have enough funds to cover these items as they come due throughout the year, ensuring all payments are made on time and taking that off your plate. You make one payment to your lender, and the accounts are filled and disbursed on the backend. 

Real estate at the Lake is a large investment, so ensuring that you're working with a reputable company to assist you in these transactions is essential to the experience and results. Arrowhead Title understands the importance of this and as such provides great attention to detail, transparency, and communication on all of our escrow and settlement services at the Lake of the Ozarks. If you have any additional questions we may have missed, please feel free to contact us. As always, we're here for you!

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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