Question:

How to open an escrow account?

Answer:

Borrowers should know how to open an escrow account. It usually involves driving to the escrow company at the time when title search is ordered. Although a lender may hold escrows internally, they may as well be using the services of an escrow or title company.

Commonly, you may submit an escrow request form and a purchase agreement to the escrow company via fax or e-mail. An escrow account is also used as the place to deposit earnest money, documentation and assets related to the purchase. Opening an escrow account is vital to make sure that no funds or property change ownership before transaction terms have been successfully followed.

All details regarding the purchase have to be provided to the escrow agent. Sometimes only the buyer or the seller will need to open an escrow account; sometimes both will need to open the account and the lender may have to be involved, too.

Opening an escrow account should take no longer than one business day or even less if you provide all the necessary information to the escrow agent.

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