The home buying process can be a very exciting yet stressful time. From searching for the perfect home to making sure you have enough money saved up for your down payment, the whole process can be a little confusing. The escrow can be one of the most confusing and stressful parts of the whole process, especially if you are not exactly sure what the process is. While having an expert escrow agent and company can help simplify the process, it is important to make sure you understand where all of your money is going.
Mortgage escrow accounts allow borrowers to accumulate the most amount of money to pay for property taxes and homeowners’ policy premiums, a little bit at a time. The escrow process can help home buyers avoid any financial surprises, such as missed payments to the government. While the escrow process can help with these things, it is important to keep in mind that it is fool-proof, and you should always keep a close on where your money is going throughout the home buying process.
While not everybody needs to set up an escrow account when buying a home, most people can benefit from it, especially first time home buyers. They allow the lender to pay the taxes for you, which can help ease your mind and help make sure nothing falls through the cracks. It can help home buyers avoid getting stuck with a huge tax bill by paying it throughout the process.
People must make monthly deposits into their escrow account, which is all agreed upon in the loan documents. The lender is then responsible to paying the property taxes and insurance premiums. The account usually stays active until the home buyer pays the mortgage down to 80 percent of the loan-to-value threshold.
Contact Eastland Escrows for all of your real estate needs in the Southern California area.
Eastland Escrow Inc. 