What does an escrow company do in the home-buying process?

What does an escrow company do in the home-buying process? findwell agent Michael Schafer answers in this installment of Ask an Agent.

Q: What does an escrow company do in the home buying process?

An escrow company is a third-party facilitator that handles the transaction according to the terms of the contract and follows it from start to finish. They handle the transfer of money between both parties. They also handle clearing issues that are found on title prior to closing.

The escrow company will orchestrate the signings for both buyer and seller prior to closing, and they work with the lender to get the documents in time and get everything lined up to close on your closing date.

On the actual closing date, the escrow company will notify both parties when the documents have been sent down to the county to be recorded. Once that happens, ownership is transferred and the keys are given to the buyer.