Escrow Question

Hi David,

You are correct in that any money you put down or earnest money with the escrow company goes towards your total purchase price of the home, so you have to come to the closing with the remaining $2k to settle on the transaction. The escrow or title company will let you know if there are any additional funds you need to bring to the closing, you can also always call them to find out ahead of time to make sure there are not additional cost to you.

Hope that helps,
Shah

Escrow is just an account that a third party, ie. title company, opens for every real estate transaction; that's where the EM is deposited while all the paperwork gets sorted out; title of property verified, etc. Once title company has all paperwork ready and signed, then buyer has to provide the remaining balance of purchase and title company deposits into escrow account, and from there it gets paid to seller, agents, title company, etc. That's when you 'close escrow', after you receive title to property, and everyone else involved in transaction gets paid, and the escrow account is emptied.

Contact your title company. They will go over everything and explain how much, what goes where and exactly how to move forward with dollar amounts and timelines. Above all, don't worry. The great thing is that you don't have to know everything. The title company will take care of you and you'll learn along the way.

good luck!