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What Are Escrow Fees?
Buying a house right now is difficult due to high demand caused by high renting prices, low mortgage rates from the pandemic, and bidding wars between people who want the same house. Houses that hit the market are likely sold after one week, so it’s important to preplan how you’ll buy your home within your budget.
Being in escrow means you are in the in-between stage of having your offer accepted and owning your home, and this is where escrow companies oversee documents, payments for transferring taxes, accounts for the funds, and the transaction and closing processes. Escrow companies work with all parties involved and can take 30 to 60 days before officially closing.
When your deal is done, fees from the escrow companies for all the paperwork need to be paid by the buyer and the seller, and are usually a percentage taken from the total amount of the house. Escrow fees vary depending on the state, so ask beforehand for an estimate.