Escrow Fees

Services for Real Estate Pros with Montebello Escrow
Basics The escrow company usually serves as a neutral intermediary between all the parties involved in a real estate or mortgage transaction. These parties can include: * lenders * brokers * insurance agents * appraisers * notaries A mortgage loan usually involves a very large amount of paperwork. This is necessary to protect all the parties involved, including buyers, sellers, lenders, and others. The escrow agent also handles the transfer of money between the parties. A lender will wire money into an escrow account. If it is a refinance to cash equity out the escrow agent will deduct the relevant fees owed to other parties and pay the remainder out to the borrower. If the transaction is a real estate purchase the escrow agent will receive money from the lender, pay off any existing mortgages and closing costs, collect any buyer depsosit, and give the rest as sales proceeds to the lender. After any transaction the relevant public records are updated to reflect the ownership of a property and the liens on it. It is a crtitical job that requires meticulous record keeping. How The Escrow Affects You Escrow fees are usually around $500 - $1500 depending on the loan size. The size of the escrow fee may change depending on the amount of the loan or transaction. Shopping Around For Escrow Services The escrow service is usually chosen by the realtors in the event of a real estate purchase and the lender or mortgage broker in the event of a refinance. Professionals who have done lots of deals usually get a better per deal price from an escrow company which may in turn pass on the savings to you. You can ask how the escrow agent is selected, and find out how their rates compare.

Comments (4)

Kenneth Young
Uni International LLC - Virginia Beach, VA

Let's hope that everyone knows the difference between "Escrow" accounts and "Earnest" accounts.  We deal in "Earnest" accounts instead of "Escrow" accounts all the time.

Apr 24, 2009 06:19 AM
Cherry Wings Realty
Cherry Wings Realty - Traverse City, MI
Your Traverse City Michigan Realtor

We owe it to our clients to give them cost and service comparisons when they are choosing a title company.  I always give my clients a choice of at least two title companies that I have used that I know can handle any challenges that come up because there is a level of experience in their office second to none and then I let them choose based on the price comparisons.

Apr 24, 2009 06:26 AM
Gene Ward
Area Pro Realty - Danville, CA
Gene Ward

Not all escrow companies are created equal. I've found most of their fees are pretty much the same. The big differences are the escrow officers themselves. A good escrow officer is worth their weight in gold as they not only get the job done, they get it done right.

I've experienced both good and bad escrow officers. The good ones protect your client, the bad ones don't. I don't refer by company so much as by escrow officer. I've seen both good and bad in the same company.

Refer at least two good escrow officers you've worked with before to your clients. No matter which one they pick you know it will be a good one.

Apr 24, 2009 06:45 AM
Michael Lee
Frog Realty - Tallahassee, FL

I agree that the individual makes the difference.  I always have my preferred partner in any area at the top of the list presented to customers.

Apr 24, 2009 01:51 PM