please explain to me what an escrow is? what do u mean by middle men? who are they exactly? a bank representative?
what else should i know, before i buy a house?
2007-09-16 09:02:31 · 2 answers · asked by SonuB 1 in Home & Garden ➔ Other - Home & Garden
An escrow account is usually a special account set up for the purpose of holding money while a deal is made. Let's say you agree to buy my house. Most likely you do not have the money in your pocket to do so and are probably borrowing most of it. We agree on a price and you now need time to complete the mortgage application process. We have a deal contingent on whether you get the loan or not.
Well, I don't want to stop advertising my house and then have you end up not buying it. You don't want to go through the loan process only to find out I sold the house to someone else.
So you are required to give me an agreed to amount of cash that will be applied to the purchase when the loan is approved. It proves that you are serious about buying it. You want to make sure I don't run away with your money. So the money goes into an escrow account. Neither you nor I can touch the money anymore until the deal is completed. Upon proof that the deal is approved or is rejected the escrow company or bank will pay the money to the appropriate one.
A middle man is anone who provides an in between service. Such as you the buyer and me the seller may be a realtor. He provides his services and takes a percentage of the selling price as his fee.
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2007-09-20 08:27:20 · answer #1 · answered by Jacob W 7 · 0⤊ 0⤋
Well you really need to talk with a realtor. It would take forever to teach you all the mystery's of home buying .
2007-09-17 23:54:28 · answer #2 · answered by ♥Y*G*L ♥ 7 · 0⤊ 0⤋