What is Escrow?

Escrow is a form of buying a home in which a neutral third party holds the documents and money until the closing activities are completed. To open escrow, you'll make a deposit that is cashed and held in the escrow account. Known as "acceptance of deposit," it means that you're done house hunting. It also marks your agreement to start the loan approval process in good faith with the goal of closing escrow. To close escrow, all of the papers and the money are deposited with the escrow agent within the agreed-upon time. The documents are recorded and everyone gets the documents and money due them.

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