What Is Escrow
Escrow is a neutral holding process used during a home purchase to keep money and documents safe until certain steps are completed.
It helps protect both the buyer and the seller during the transaction.
How Escrow Works
During escrow, a third party holds important items such as earnest money, documents, and instructions.
Funds and paperwork are released only when all agreed upon conditions are met.
When Escrow Is Used
Escrow is commonly used:
After an offer is accepted
During closing
For ongoing items like taxes and insurance
Why Escrow Matters
Escrow creates trust by making sure no one is paid too early and no documents are finalized before requirements are met.
What Comes Next
Explore more guides in the Learn Hub section or try the Home Readiness Check™ to see how prepared you are for buying a home.