Home Loans 101: What is Escrow?


When you encounter the term "escrow" in the context of a mortgage, it typically refers to a financial account managed by a neutral third party. This account holds funds on behalf of the buyer and seller during a real estate transaction. The third party, often an escrow agent or company, ensures that the funds are handled according to the terms of the agreement until the transaction is finalized.

This can include holding the buyer's earnest money deposit and managing payments for property taxes and insurance. Escrow helps protect both parties by ensuring that the funds are disbursed correctly and that all conditions of the sale are met before the deal is closed.

This is not a commitment to lend. Loan approval is subject to credit, underwriting, and property approval. Rates and terms subject to change without notice. Additional conditions and restrictions may apply. Contact us for details.

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