During the purchase: your earnest-money deposit
Your contract identifies the deposit holder, amount and delivery requirements. Ask your agent and settlement team to confirm these details from the signed agreement. Do not assume that the deposit holder and your mortgage servicer are the same organization.
After closing: a mortgage escrow account
A lender or servicer may collect part of your property-tax and insurance expenses with your mortgage payment and pay those bills from an escrow account. Whether an account is required depends on the loan and applicable requirements. Ask your lender to explain the initial deposit, monthly collection and future adjustments.
Questions to bring to your lender
Which bills will the account pay? Which expenses remain your responsibility? How much will be collected at closing? If the loan does not include escrow, how will you budget for the bills you must pay directly?
Questions to bring to Title Smart
Who is holding the earnest money? Has receipt been confirmed? How is the deposit shown on the closing statement? Contact our team to review the deposit and settlement steps for your specific contract.