What is escrow in Boston real estate? If you’re beginning to research Seaport condos for sale in your downtown Boston area, you’ve likely come across this unfamiliar term. In general, escrow means that a neutral third party (bank,lawyer) takes holds the money during a transaction. This can occur at several points during the process of buying and selling Boston real estate. Here’s what you need to understand about the escrow process as a first-time home buyer.
Making the Offer
When shopping for downtown Boston real estate, if you find a Boston condo for sale in your budget that checks all your boxes, it’s time to make an offer on the property. You’ll need to write a check for earnest money, the first check is usually $1,000 down with the Offer followed up by the P&S money which is 5 -20% off the purchase price. This is a good-faith action to show that you’re serious about the transaction. The earnest money will be held in escrow until the deal closes, which protects both the buyer and the seller.
Obtaining a Mortgage
Another escrow real estate application occurs when you shop for a home loan. Generally, property taxes and homeowner’s insurance are rolled into your monthly mortgage payment. The mortgage company holds these funds in escrow until these payments are due, at which point they remit the money on your behalf.
Completing the Process
At closing, the final paperwork will be signed and deeds exchanged. At this point, an escrow money will disburse the earnest money from escrow to the seller and you will take ownership of the Back Bay or Beacon Hill condo.
Contact us today to learn more about downtown Boston real estate for sale, such as condos for sale in the Seaport District or Midtown luxury high rise condos. We’ll be happy to help you find the perfect home for your needs and lifestyle.
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