Closing on a new home is a hectic, stressful process for everyone involved. When a buyer sits down to finalize the purchase of a home, he or she must go through and sign dozens of documents, some of which may require notarization from a commissioned notary public. If the notary public makes a mistake, it could result in the purchase being delayed.
According to data from the National Association of Realtors and the U.S. Census Bureau, approximately 5,090,000 existing/used homes and 429,000 new homes were sold in 2013. While the housing market is still recovering from the 2010 crash, sales are on the rise. This has prompted many individuals and families to buy their first home.
Escrows are often used in conjunction with home mortgages for convenience and liability purposes. Unfortunately, many people are confused regarding the actual purpose of mortgage escrows and how they work. Being forced to bundle multiple payments together adds even greater confusion to the already complicated process of closing on a home. For a better understanding of mortgage escrows, keep reading.