Nickel City Funding, Inc. is here to help make the escrow and closing process for your mortgage simple. Our team in Orchard Park, NY has helped many people understand how each step works. Though it may seem complicated, escrow is simply a financial structure were a third party holds and monitors the payment of funds between two parties for a given transaction. The funds are held in a secure account until it is confirming all the terms of the sale agreement are met as agreed upon.
A lender, a buyer, or a seller may all use an escrow account. For the lender, it can be used to hold funds from the buyer to cover the cost of insurance and property taxes. This may be asked for at the time of your monthly mortgage payments.
Why Does Escrow Exist?
When you are working on the final transactions of a home sale, there are a lot of funds being exchanged. Often, many details agreements are made in order to approve the funding. The seller will have a third-party step in to confirm all the work agreed upon is being completed to satisfaction. This helps them save time and ensure that all agreements are reviewed by people with the right expertise. The buyer also wants to ensure that any agreed upon changes to the house are done before they pay a large amount of funds. Essentially, escrow exists it protects money and the product from being mishandled and it can prevent fraud.
How Does Escrow Work?
Nickel City Funding is experienced with all the steps of an escrow. It starts first with the beginning of the transaction and agreement of the buyer and seller to the terms of the transaction. Each party submits property, merchandise or funds to the third-party escrow company accounts. The company notifies each party that the funds, merchandise, or property have been delivered to their satisfaction. Each party may have some time to review and inspect what was received to ensure that it was to their liking. Once everyone agrees, the funds can be released as intended. Escrow staff must adhere to the highest ethical standards and monitor every step in the process very closely.
Holding Your Funds for the Best Possible Sale
When you look to buy or sell a home, you want to ensure you’re in the best hands possible. Using escrow helps to ensure that your assets and funds are not wasted, stolen, or misspent. Finding the right impartial company to lead your escrow is a key step in the process. Nickel City Funding loves helping new home buyers understand the process and find their dream home around the Orchard Park, NY area.