🏠 Understanding the Escrow Process: A Step-by-Step Breakdown

Buying or selling a home in Duluth or the Iron Range is an exciting journey — but when you hear the word “escrow,” it can sound a little mysterious. Don’t worry — it’s actually a simple, but very important, part of the real estate process!

Let’s break it down step by step 👇

🔹 Step 1: Opening Escrow

Once a buyer and seller agree on the terms of a sale, an escrow account is opened. This is a secure, neutral place where funds and documents are held until all conditions of the sale are met. Think of it as a safety net for both parties — protecting the buyer’s earnest money and ensuring the seller follows through on agreed terms.

🔹 Step 2: Inspections and Appraisal

After escrow opens, the buyer usually schedules inspections to ensure the home is in good condition. The lender also orders an appraisal to confirm that the property’s value matches the agreed-upon price. These steps help protect everyone involved from surprises later on.

🔹 Step 3: Securing the Loan and Reviewing Documents

If the buyer is financing the home, their lender will finalize loan approval during this period. Meanwhile, the escrow officer makes sure all required documents — title reports, disclosures, and agreements — are completed accurately.

🔹 Step 4: Closing Time!

When all conditions are met, both parties review and sign the closing documents. The buyer’s funds are transferred into escrow, the seller receives payment, and the title officially transfers to the new owner. The escrow officer then records the sale with the county, and just like that — it’s time to celebrate 🎉!

💡 Why Escrow Matters

Escrow provides peace of mind for everyone involved. It ensures money and paperwork are handled correctly and that no funds change hands until every box is checked.

✨ Thinking about buying or selling a home in Duluth or the Iron Range?
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📍The Big Life Team Powered by Place Brokered by My Place Realty
Your trusted Duluth & Iron Range real estate team — local expertise, real results.