It's easy to get spooked when you're trying to buy a home; especially if you have never done it before. There are a lot of terms that get thrown around that you may not be familiar with. Here are some tips that will help you along your way.
Your money doesn't go directly to the seller in the beginning. You have to write what is called an earnest money check. A third party holds on to it while the sale is being negotiated. The seller needs to know that you have money, but you deserve the right to know your money isn’t going to go anywhere.
Once you have reached terms that you and the seller can agree on, an escrow officer will oversee the final paperwork. This is called closing. This is the person that will make sure that money held in escrow will be disbursed correctly.
A lot of the times, after the first escrow is closed, a second escrow can be opened. A monthly payment escrow holds funds that will help you pay property taxes and homeowners insurance premiums. Every year, you'll get an escrow statement. This is normally when you will be alerted to changes in your monthly notes. Your notes will change due to lower or higher taxes, and/or lower or higher insurance premiums.
Buying a home is a huge stepping stone in life. There are people that can guide you through this journey, and they are just a phone call away. TriStar Title and Escrow can help you throughout the entire process.