Have you been looking into buying a home, and are curious to learn more about the escrow process? The process of purchasing a home consists of several intricate steps that can sometimes be difficult for buyers to understand. If you are looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to learn more about the escrow process, Foundation Mortgage can help. Our loan specialists can work closely with you to help simplify the process to obtaining a mortgage.
Essential Escrow Information and How the Process Works
When you find the home you want and put an offer on it, and the offer is accepted by the seller, the transaction is held in escrow. Although it may seem like a complicated process at first, escrow is essentially a financial arrangement in which a third party oversees and holds a payment between two separate parties who are in the process of completing a payment in order to protect the interests of both parties. During the time the seller and the buyer are finalizing the details of the purchase, the funds and documentation of the purchase are held in escrow to guarantee that the obligations of both parties are fulfilled. An escrow officer monitors the money involved in the transaction until both parties reach a sales agreement.
Since such a significant amount of money is being exchanged in the sale of a home, and in order to approve the funding, a number of specific agreements are made. One of the intentions of the escrow process is to guarantee that the seller has resolved any issues that may be associated with the home so the buyer does not experience any fraudulent circumstances and to ensure that everything is legit. It also guarantees that the buyer can afford to complete the purchase and that when the title is transferred, the money is distributed to the seller. The escrow process is intended to ensure that the agreements that were made by both parties are met.
How Does the Escrow Process Work?
When the buyer and the seller agree to the terms of the transaction, the escrow process begins. After that, each party contributes documents, money, and property into an escrow account. The escrow company will then notify both parties when the items have been delivered to the satisfaction of both parties. Both parties have a certain amount of time to review the terms and assure the obligations of the agreement are fulfilled. When both parties reach an agreement, the funds are released from escrow and the deal is finalized.
Get Help Understanding the Escrow Process
Purchasing a home can be a challenging process, but the escrow process ensures that your savings will be protected when you buy your home. The loan specialists at Foundation Mortgage can work with you during each step of the home buying process, and help guide you during escrow. If you are looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact us today for a consultation.