The escrow process can be confusing to someone trying to buy a property for the first time.
However, armed with some information, you can have escrow questions answered and feel a lot more comfortable moving forward in this process to purchase a property of your dreams.
1) Not reviewing your property closing documents for escrow math mistakes
People make mistakes, and these mistakes can appear even in final closing documents when purchasing a home. Prevent any surprises later on by reviewing the escrow numbers in your final documents when purchasing a property.
2) Not knowing your property insurance and property tax due dates
Keeping an eye on your property insurance and property tax due dates will ensure that a payment isn’t missed. While this should all be automatic, knowing when what payment should be taken out (and checking to make sure it was) will help prevent any problem.
3) Not keeping an eye on your escrow balance
Your property insurance premium and property tax can change over time. Make sure that your escrow balance has enough money to cover these changes.