When their home loan providers mention escrow, many home buyers panic: It’s a term they’ve heard but don’t quite understand. The professionals at Premium Mortgage Corporation, which services Buffalo, Rochester, and Syracuse, New York, as well as Barre, Vermont, explain the meaning of escrow here to demystify its meaning once and for all.
Escrow Represents a Promise of Purchase
As unnerving as it is, escrow is a positive step in purchasing a new home. Being in escrow represents the buyer writing an “earnest money” check to be held by a third party as a “promise of purchase.” This secures the property to the buyer until all relevant inspections and updates are made. Escrow ensures an impartial third party basically places a “hold” on the property until both the buyer and seller are satisfied with the purchase and sale terms. Once it is complete, the sale is final.
Escrow Protects Both Parties
It may seem confusing, but escrow protects both the seller and the buyer. The former would never want to sign over the deed to their property without payment. Likewise, a buyer would not want to hand over their hard-earned cash to a seller without reassurance they’ll receive the property. By placing escrow funds in an impartial third-party account, home loan providers say both parties are protected, fair treatment is maintained, and laws are upheld.
If you’re ready to purchase your first home, refinance your current one, or receive a consultation on a real estate purchase, contact the mortgage brokers and home loan providers at Premium Mortgage Corporation. They’ll make sure you understand the buying or selling process fully and have been helping customers for nearly 20 years. Call them today at (844) 793-0177 or visit their website to learn more.
Corporate Contact Information:
2541 Monroe Avenue
Rochester, NY 14618
NMLS #3254 | Equal Housing Lender
Licensed Mortgage Banker NYSDFS