Is there escrow with buying a house and a loan?

Question

Ok.  I'm buying a home and they're talking about the escrow.  Then the loan officer is talking about how I need escrow.  So is it all the same?  Or are these different escrows?  And what does that even mean?

Amanda Courtney · Accepted Answer

Almost always, yes. Escrow acts as a neutral third party that holds funds, coordinates the closing, and ensures all contract terms are met. Once the sale is finalized, escrow also manages your tax and insurance payments through your loan servicer if you have an escrow account set up.

Desiree Burgnon · Answer

Yes in some states they use escrow.  Escrow is a third part that handles all of the paperwork between mortgages co, title, both agents and buyers and sellers.  They make sure that everything is taken care of in a timely manner.

Judy Behan · Answer

Your mortgage payment includes your mortgage payment Plus the items (home insurance, property taxes, PMI & there may be some others) that the bank will collect a portion of money to be held in escrow as part of your TOTAL mortgage payment.

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