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Why Am I Paying Escrow Fees At My Mortgage Closing
(presented by www.refinance-refinance.net - mortgage lenders)



By Ben Afzal

Basics

Escrow companies are the neutral intermediary in between different parties in a real estate transaction, including:

  • buyer
  • seller
  • buyer’s realtor
  • seller’s realtor
  • appraiser
  • lender
  • mortgage broker
  • hazard insurance agent
  • title insurance agent
  • government entities

All of these sometimes competing interests need a neutral party in the middle of everyone tracking everything and making sure money changes hands fairly.

An escrow company will tally all of your closing costs and give you an estimate of how much cash you will need to bring to the table at signing, or how much cash you will get out at a refinance.

The escrow company usually also arranges for the notary public to handle the signing of the large number of documents that are typically involved with a mortgage transaction. They verify that the paperwork was completed properly. Sometimes errors in made on how individual documents were signed or witnessed. Escrow companies often help to make sure the paperwork is clean and acceptable to the lender. Errors in paperwork happen more often than many people realize, and escrow companies often work behind the scenes to resolve these.

(Article continues below)

HOME LOANS ADVERTISEMENT

Saving Your Money

There are many competing escrow companies.

Ask your realtor or mortgage broker to try to get you the best escrow deal possible. Professionals who have a large volume of deals may be able to get better overall deals from escrow companies. These savings can be passed along to you.

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This entry was posted on Wednesday, October 11th, 2006 at 2:07 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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