At Title Junction we do not encourage anything quite like we encourage consistent and concise communication between all parties involved in each individual real estate transaction. It is important to maintain communication not only to reach the desired closing date but to make sure that both buyer and seller are aware of what they are agreeing to.
However, though many are doing their best to provide both buyers and sellers with the best information, they are still reaching the closing table confused when it comes to impound accounts. An impound account, also referred to as an escrow account, is set up by your lender. This account pays extraneous property-related fees on your behalf. These fees may include things like your homeowner’s insurance or property taxes. These bills can be inconsistent with both timing and amount due. So, to help with this, homeowners can choose to pay them in small payments with their monthly mortgage through an impound or escrow account. This way they are spreading out these bills while making payments on time.
This information is extremely important because if your loan does not include an escrow account then it is up to you to plan to pay these fees on your own without the additional help and management that impound/escrow accounts offer.
Furthermore, if an escrow account isn’t featured in your loan then don’t be afraid to request one to your lender. Keep in mind that this account may make things easier financially for you and your family. The purpose of an impound or escrow account is to increase predictability. If the payments increase, then they will in installments rather than a huge unexpected bill that puts you behind.
Not sure if your lender has included it or how it works? ASK YOUR LENDER!
Also, Title Junction features a short video demonstrating the concepts of escrow in our video library : http://title-junction.com/video-library/
At Title Junction we want our buyers to be signing their final documents with comfort and confidence in their financial status. When we reach the closing table and buyers are unaware of these fees that could have been tied to an impound account then we have to take a step back and enhance the communication that should have already been established between the lender and buyer.
About Title Junction: Title Junction (http://www.title-junction.com) is a full service real estate title company serving the area of Fort Myers, Cape Coral, and the entire state of Florida. The company handles a number of real estate title services for both commercial and residential properties and the employees can help a foreign investor or foreign seller navigate through the tricky FIRPTA regulations. Employees of Title Junction can also act as a witness in courtesy closings, an escrow agent or a notary public. The company was founded in 2005.