Quick Links

HOME PAGE
MEET THE TEAM

Resources

IMPORTANT LINKS
LOCAL EVENTS
ABOUT US
LOCAL PARTNERS
TESTIMONIALS
SCHOOL INFO
LOCAL WEATHER
MOVIE TIMES

Home Search

HOMES FOR SALE
FEATURED LISTINGS
NEW LISTING ALERT

Real Estate Tools

HOME VALUES
CALCULATORS
GLOSSARY
HOME FINANCE
TODAY'S RATES

Real Estate Info

HOME BUYING
SELLING A HOME
FREE REPORTS
FREE FORMS

Contact : Ponce De Leon Realty
Phone : 386-492-4908

Escrow

A neutral third party holds documents and money for a local Daytona Beach area real estate transaction and ensures that all conditions of a sale are met. That in a nutshell is the definition of Escrow. A special account that a lender uses to hold a borrower's monthly payments on Daytona Beach area home taxes and insurance also refers to an escrow.

The amount of money that you will be required to come up with at escrow depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the Daytona Beach area home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the Daytona Beach area home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

When you make an offer on a home, your local Daytona Beach area real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.

Some Daytona Beach area real estate buyers hold monies in escrow because it helps ease closing costs.

Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

QUICK LINKS:
MLS HOME SEARCH	FEATURED LISTINGS	OPEN HOUSES	RECENTLY SOLD
MEET THE TEAM	LIST WITH US	NEW LISTING ALERT	15 SECOND APPRAISAL
HOME BUYING	SELLING A HOME	FREE REPORTS	FORMS
HOME FINANCE	FINANCING TERMS	REAL ESTATE TOOLS	TODAY'S RATES
TESTIMONIALS	LOCAL NEWS	MOVIE TIMES
COMMUNITIES:
GOLF & COUNTRY CLUB	LUXURY	WARNER ROBINS	MACON
KATHLEEN	PERRY	BYRON	EAGLE SPRINGS
MILL POND PLANTATION	MORGAN RANCH	ALL COMMUNITIES