When dealing with Escrow, as it relates to mortgages and real estate, there are two topics concerning home buyers: the closing of the sale of the property (referred to as Escrow), and the Mortgage Escrow Account (a fund set aside for ongoing expenses while the lender holds the note on the property).
Curry County Abstract & Title Co. not only provides complete Escrow services throughout New Mexico but also aims to clarify these concepts so people can be better prepared when deciding to buy their first home and take on a mortgage.
What is an Escrow?
Buying a house is not a simple procedure. With very few exceptions, it will be the most significant financial decision you will ever make and will mean that you have an obligation to your lender for many years to come to pay down your mortgage note. Therefore, specific procedures, rules, and paperwork must be followed and signed.
In almost all real estate transactions, you will deal with a neutral third party, the Escrow Holder (or Escrow Agent). The Escrow Holder's purpose is to ensure everything is in order so that all parties involved follow the rules and are protected. Moreover, the Escrow Holder will ensure that all documents are received and filed. They will also ensure that all stipulations in the buying and selling agreement are met before the home's sale is finalized. Finally, they are in charge of receiving the funds from the buyer and releasing them to the seller only when the deal has been finalized.
Escrow Accounts are used to fund certain ongoing payments that must be made over the life of the loan. Such items have continuing payments including property taxes, insurance, and mortgage insurance. It is important to note that Escrow Accounts are usually partially funded at closing, and then a certain amount from each month's mortgage payment is directed to the escrow account. When items come due, the Escrow Account is used to make payments on behalf of the Mortgage Holder.
Relying on Curry County Abstract & Title Co.
Curry County Abstract & Title Co. provides complete Escrow services throughout New Mexico. In addition, Curry County Abstract & Title Co. thoroughly prepares and handles all final closing details. Curry County Abstract & Title is part of an American historical tradition that embraces progress, endurance, and independence. Ultimately Curry County Abstract & Title Co. is dedicated to protecting your equity position for your real estate transaction through fast and accurate service.