Also refers to monthly tax/insurance impounds collected with your mortgage payment.
Process & Closing
Escrow
A neutral third-party account holding funds and documents until all closing conditions are met.
More in Process & Closing
- Proof of Funds (POF)— A bank or investment statement showing you have the cash needed to close.
- Earnest Money Deposit (EMD)— A good-faith deposit sent to escrow when your offer is accepted — typically 1–3% of purcha…
- Title Insurance— One-time insurance policy protecting against defects in a property's title (liens, forgery…
- Closing Costs— All the third-party and lender fees due at closing — typically 2–5% of purchase price.
- Due Diligence (DD)— The buyer's investigation period after contract — inspections, financials, title, environm…
- Property Inspection— Physical walk-through by a licensed inspector who reports on the condition of major system…