What is Escrow?

If you’ve heard anybody talk about buying a house, you’ve probably heard the term “escrow.” But do you know what it means? It’s a common term associated with the home-buying process, although not always related to real estate, but it’s often misunderstood.

Escrow is when funds are entrusted to a neutral third party until a set of conditions are met by both the buyer and seller.

Adding to the confusion, there are two different times escrow may be referred to in the home-buying process, and while they have the same foundation, they refer to different transactions. In addition to placing earnest money into escrow, an act of good faith by the buyer while closing on a house, you can also open an escrow account with Santander Bank.

All loans are subject to approval.

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