When you purchase a new home in Arizona, escrow is a word that you will hear numerous times from different parties. There are several types of escrow accounts that will be established, and you may be wondering where your money will go when placed in an escrow account or how it is applied to your transaction. By taking time to learn more about the escrow process, you can be a more informed buyer.
Your Initial Escrow Deposit
Within a short period of time after your offer is accepted by the buyer, you will be required to make an escrow deposit to the title company. Typically, you will write a check for the escrow deposit, and your title agent will hold the funds in a non-interest bearing account. These are funds that will be applied to your down payment/closing costs at closing, and they serve as a good faith of your interest to proceed to the seller.
Escrows for Taxes and Insurance
The amount of money that is required at closing will be dependent on the month that you close as well as the annual costs for taxes and insurance.
Essentially, escrow accounts are established to pay for specified expenses that you are required to pay for as a buyer. The initial escrow deposit for the sales contract is a short-term type of escrow account.
Now that you know more about the escrows that you will be required to contribute money to as a buyer, you will be a more informed buyer when making your real estate purchase.
This is why it is important to have a great Title company as part of your real estate team. First Arizona Title agency takes pride in safeguarding every transaction from complicated commercial closings to simple residential cash translations. First Arizona Title’sreputation for experienced staff, combined with local market knowledge lease to security in your transaction.
Your Initial Escrow Deposit
Within a short period of time after your offer is accepted by the buyer, you will be required to make an escrow deposit to the title company. Typically, you will write a check for the escrow deposit, and your title agent will hold the funds in a non-interest bearing account. These are funds that will be applied to your down payment/closing costs at closing, and they serve as a good faith of your interest to proceed to the seller.
Escrows for Taxes and Insurance
The amount of money that is required at closing will be dependent on the month that you close as well as the annual costs for taxes and insurance.
Essentially, escrow accounts are established to pay for specified expenses that you are required to pay for as a buyer. The initial escrow deposit for the sales contract is a short-term type of escrow account.
Now that you know more about the escrows that you will be required to contribute money to as a buyer, you will be a more informed buyer when making your real estate purchase.
This is why it is important to have a great Title company as part of your real estate team. First Arizona Title agency takes pride in safeguarding every transaction from complicated commercial closings to simple residential cash translations. First Arizona Title’sreputation for experienced staff, combined with local market knowledge lease to security in your transaction.
