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.
Disclaimer: Loan amounts and terms are based on individual qualifications and may vary by credit score, income documentation, and other eligibility factors. AFM Lending is committed to finding solutions that fit your unique financial profile. Contact us to confirm program details and see if you qualify. This post is not a commitment to lend.
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