Process
Escrow
A neutral third-party arrangement where money or documents are held until certain conditions are met. During a home purchase, earnest money is held in escrow until closing. After closing, your lender may maintain an escrow account to collect a portion of your property taxes and homeowners insurance with each monthly payment, then pay those bills on your behalf when they come due.
Why It Matters
Escrow is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.
Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in escrow. Delays and misunderstandings at any step can push back your closing date or cost you money.