The Basics of Escrow
The multitude of steps and terminology involved in buying a house can be overwhelming. While realtors will walk you through everything you need to know, it helps to have a firm understanding of some things before you get pre-approved and start making offers.
One key component involved in nearly every sale is the escrow, or impound account. This is an account set up by your mortgage lender to pay certain property-related expenses on your behalf (property taxes and homeowner’s insurance). Many (mortgage) lenders require an escrow account, to insure that the property is not at risk. The fees can vary from year to year, and are generally rolled into monthly mortgage payments.
Many states require an escrow account, but even if yours doesn’t, it’s prudent to have. Without an escrow account, homeowners will be responsible for large property-related bills in lump sums, and not always at convenient times. Failure to pay property taxes in a timely manner will also result in fines and fees.
Lyon Real Estate
Ranked the number one brokerage in annual home sales in the greater Sacramento region by the Sacramento Business Journal, Lyon Real Estate has served the area for over 70 years. In 2017, the company closed 7,333 transactions worth a total of $3 billion in sales volume. Lyon Real Estate has 950 agents in 17 offices located throughout the region. The company is a member of the Leading Real Estate Companies of the World®, the largest network of premier locally-branded firms, as well as LeadingRE’s Luxury Portfolio International® program. In addition to its real estate services, Lyon Real Estate offers RELO Direct, a global relocation program. For more information about Lyon Real Estate, click to GoLyon.com and follow us on Facebook.com/LyonRealEstate.