What is escrow on a house?

This is a legal agreement between a buyer and a seller where a third party holds money or a property until conditions have been met by both parties.

What does ‘in escrow’ mean?

This is a term used during the home-buying process. To be “in escrow” means you’ve got a type of legal holding account. This means that the money and property in the transaction can’t be released until all conditions are met by both the buyer and seller.

Do I get escrow money back at closing?

It depends! At the close of escrow, you’ll likely get your earnest money deposit back. Generally, this is applied to your down payment amount or closing cost amount. However, if you have a loan with no down payment and there’s a surplus of your earnest money deposit, you may get a check.

What Is Escrow And How Does It Work?