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At Title Junction we strongly encourage consistent and concise communication between all parties involved in each individual real estate transaction. It’s important to maintain communication not only to reach the preferred closing date but to make sure that you are aware of what you’re agreeing to, whether you’re buying or selling.

Although all involved parties do their best to provide you with the best information, you may still reach the closing table confused about impound accounts. An impound account, also referred to as an escrow account, is set up by your lender. This account pays extraneous property-related fees on your behalf. These fees may include things like your homeowner’s insurance or property taxes. These bills can be inconsistent with both timing and amount due. To help with this, homeowners can choose to pay fees in small payments with their monthly mortgage through an impound or escrow account. This way the bills are spread out while payments are made on time.

This information is extremely important because if your loan does not include an escrow account then it is up to you to plan to pay these fees on your own without the additional help and management that impound/escrow accounts offer.

Furthermore, if an escrow account isn’t featured in your loan then don’t be afraid to request one from your lender. Keep in mind that this account may make things easier financially for you and your family. The purpose of an impound or escrow account is to increase predictability. If the payments increase, then they will increase in installments rather than a huge unexpected bill that puts you behind.

Not sure if your lender has included it or how it works? ASK YOUR LENDER!

At Title Junction we want our buyers to sign their final documents with confidence in their financial status. When we reach the closing table and buyers are unaware of these fees that could have been tied to an impound account, we have to take a step back and enhance the communication that should have already been established between the lender and buyer.

At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: Your Closing Disclosure: Making Sense of Closing Costs

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