One of the crucial drivers of buying a home is the ability to make timely and consistent payments. To ensure this happens, many people establish an escrow account. This arrangement automatically pays your annual property tax bill as well as homeowners insurance payments. Here are several benefits of using a professional escrow services agency.

Why You Should Use Escrow Services

1. Protect Deposits 

Some home purchase agreements require the buyer to give a deposit to the seller. However, real estate transactions may fall through before they reach closing. If you gave the deposit directly to the seller, they may be reluctant to return it. However, a third-party escrow services provider can manage this deposit in an account. If you choose this option, they will return your deposit without delay or problems. 

2. Prevent Late Fees & Penalties

When you work with an escrow services firm, they will set up the account to pay your property tax bills and homeowners insurance payments in automatic monthly increments. This ensures you won’t face late fees and interest accumulation. You provide the funds for the escrow account and the escrow holder manages them.

3. Avoid Liens

Another benefit of partnering with an escrow services provider is the arrangement helps safeguard against liens. For example, if you decide to pay the property tax bills on your own but fail to do so, the county agency can put a lien on the home.

A foreclosure may also occur if you do not pay taxes for several years. The homeowners insurance company can drop coverage, which means you’ll have to pay for repairs out-of-pocket. Because an escrow account automatically makes tax and insurance payments, you’re likely to avoid these scenarios.

For more than 30 years, First Financial Title Agency of Minnesota, Inc. has provided escrow services to home buyers throughout Burnsville, MN. The firm has a team of experienced title attorneys, closers and examiners, and abstracters who are accessible and commit to making real estate transactions easy and efficient. To learn more about establishing an escrow account, call (952) 831-5010. Visit them online for the agency’s complete suite of services.