06/23/2026
Real Estate Tip Tuesday: What Is Escrow?
Escrow is a neutral account where money is held until certain conditions of a real estate transaction are met.
There are two common types of escrow:
🔑 During the Home Purchase
The buyer's earnest money is placed in an escrow account and held safely until closing.
🏠 After Closing
Many lenders collect a portion of your property taxes and homeowners insurance each month and hold those funds in an escrow account. When those bills are due, the lender pays them on your behalf.
💡 Think of escrow as a financial "holding zone" that helps protect both buyers and sellers throughout the transaction.