“Ive bought a home a few times and I dont understand why we need to pay an escrow company all that money. Can’t I just give the seller a check from my lender and get the deed and record it?”
***ANSWER:
If only it were that simple
You wouldnt want to get a letter from the IRS saying theyre seizing your home due to an unpaid tax lien from the seller, would you?
Or give a dishonest seller $100,000’s and then they “forget” to give you the deed, sell the home to someone else, and then disappear with all your money?
You need a neutral escrow holder to be sure monies and documents don’t change hands until all agreed-upon conditions are met, including paying off all existing loans and liens on the home. Escrow can only disburse funds and convey title when all conditions agreed-upon by you and the seller have been met.