What is an 'escrow account' in a real estate context?
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Explanation
Escrow accounts serve two purposes in real estate. During the transaction, a neutral party holds the earnest money deposit. After closing, most mortgage lenders require an ongoing escrow account where monthly payments include funds for property taxes and homeowner's insurance, which the lender pays on the homeowner's behalf when bills are due.
Home inspection costs typically range from $300 to $500 but can reveal issues worth tens of thousands in repair costs, making it one of the best investments in the home buying process.