{"id":198447,"date":"2024-10-11T03:50:46","date_gmt":"2024-10-11T03:50:46","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/"},"modified":"2024-10-11T03:50:46","modified_gmt":"2024-10-11T03:50:46","slug":"what-is-the-difference-between-escrow-and-closing","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/","title":{"rendered":"What is the difference between escrow and closing?"},"content":{"rendered":"<p>Buying a home can be a complex process with many steps involved, including escrow and closing. While these terms are often used interchangeably, they actually refer to two distinct parts of the home buying process. To help clarify the distinction between these two terms, let&#8217;s explore what each one entails.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#What_is_Escrow\" title=\"What is Escrow?\">What is Escrow?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#What_is_Closing\" title=\"What is Closing?\">What is Closing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#Related_FAQs\" title=\"Related FAQs:\">Related FAQs:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#1_What_is_the_role_of_the_escrow_officer\" title=\"1. What is the role of the escrow officer?\">1. What is the role of the escrow officer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#2_How_long_does_the_escrow_process_typically_last\" title=\"2. How long does the escrow process typically last?\">2. How long does the escrow process typically last?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#3_What_documents_are_typically_held_in_escrow\" title=\"3. What documents are typically held in escrow?\">3. What documents are typically held in escrow?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#4_Who_chooses_the_escrow_company\" title=\"4. Who chooses the escrow company?\">4. Who chooses the escrow company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#5_What_happens_if_the_conditions_of_the_sale_are_not_met_during_escrow\" title=\"5. What happens if the conditions of the sale are not met during escrow?\">5. What happens if the conditions of the sale are not met during escrow?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#6_How_are_closing_costs_calculated\" title=\"6. How are closing costs calculated?\">6. How are closing costs calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#7_Who_attends_the_closing\" title=\"7. Who attends the closing?\">7. Who attends the closing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#8_Is_a_down_payment_required_at_closing\" title=\"8. Is a down payment required at closing?\">8. Is a down payment required at closing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#9_What_happens_to_the_earnest_money_deposit_at_closing\" title=\"9. What happens to the earnest money deposit at closing?\">9. What happens to the earnest money deposit at closing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#10_Can_closing_be_done_remotely_or_virtually\" title=\"10. Can closing be done remotely or virtually?\">10. Can closing be done remotely or virtually?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#11_Are_there_any_taxes_due_at_closing\" title=\"11. Are there any taxes due at closing?\">11. Are there any taxes due at closing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#12_What_should_buyers_bring_to_the_closing\" title=\"12. What should buyers bring to the closing?\">12. What should buyers bring to the closing?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Escrow\"><\/span>What is Escrow?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Escrow is a process in which a neutral third party holds funds and important documents during a real estate transaction. This third party, known as an escrow agent or escrow officer, ensures that all conditions of the sale are met before releasing the funds and transferring the property&#8217;s title. Escrow helps protect both parties by ensuring that the terms of the sale are met before the transaction is completed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Closing\"><\/span>What is Closing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Closing, on the other hand, is the final step in the home buying process where ownership of the property is officially transferred from the seller to the buyer. During the closing, all necessary paperwork is signed, and any remaining funds are transferred to complete the sale. Once the closing is complete, the buyer officially becomes the new owner of the property.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Related_FAQs\"><\/span>Related FAQs:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_What_is_the_role_of_the_escrow_officer\"><\/span>1. What is the role of the escrow officer?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe escrow officer acts as a neutral third party responsible for ensuring that all conditions of the sale are met before releasing funds and transferring the property&#8217;s title.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_How_long_does_the_escrow_process_typically_last\"><\/span>2. How long does the escrow process typically last?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe length of the escrow process can vary but typically lasts between 30 to 45 days.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_What_documents_are_typically_held_in_escrow\"><\/span>3. What documents are typically held in escrow?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nDocuments such as the purchase agreement, title documents, and any required disclosures are typically held in escrow.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Who_chooses_the_escrow_company\"><\/span>4. Who chooses the escrow company?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIn most cases, the buyer or seller can choose the escrow company, but this may vary depending on local customs and regulations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_What_happens_if_the_conditions_of_the_sale_are_not_met_during_escrow\"><\/span>5. What happens if the conditions of the sale are not met during escrow?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIf the conditions of the sale are not met during escrow, the escrow officer may delay the release of funds until the issues are resolved.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_How_are_closing_costs_calculated\"><\/span>6. How are closing costs calculated?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nClosing costs are calculated based on a variety of factors, including the purchase price of the property, loan fees, and title insurance costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Who_attends_the_closing\"><\/span>7. Who attends the closing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nBoth the buyer and the seller, along with their agents and the escrow officer, typically attend the closing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Is_a_down_payment_required_at_closing\"><\/span>8. Is a down payment required at closing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nYes, the buyer is typically required to provide a down payment at closing, which is a percentage of the purchase price of the property.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_What_happens_to_the_earnest_money_deposit_at_closing\"><\/span>9. What happens to the earnest money deposit at closing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nThe earnest money deposit is typically applied towards the buyer&#8217;s down payment or closing costs at closing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Can_closing_be_done_remotely_or_virtually\"><\/span>10. Can closing be done remotely or virtually?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nIn some cases, closing can be done remotely or virtually, especially in situations where all parties are unable to attend in person.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"11_Are_there_any_taxes_due_at_closing\"><\/span>11. Are there any taxes due at closing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nTaxes such as property taxes and transfer taxes may be due at closing, depending on the terms of the sale and local regulations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"12_What_should_buyers_bring_to_the_closing\"><\/span>12. What should buyers bring to the closing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\nBuyers should bring a government-issued ID, proof of homeowners insurance, and any required funds for closing costs or down payment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a home can be a complex process with many steps involved, including escrow and closing. While these terms are often used interchangeably, they actually refer to two distinct parts of the home buying process. To help clarify the distinction between these two terms, let&#8217;s explore what each one entails. What is Escrow? Escrow is &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What is the difference between escrow and closing?\" class=\"read-more button\" href=\"https:\/\/namso-gen.co\/blog\/what-is-the-difference-between-escrow-and-closing\/#more-198447\">Read more<span class=\"screen-reader-text\">What is the difference between escrow and closing?<\/span><\/a><\/p>\n","protected":false},"author":50,"featured_media":107420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86279],"tags":[],"class_list":["post-198447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the difference between escrow and closing?<\/title>\n<meta name=\"description\" content=\"Buying a home can be a complex process with many steps involved, including escrow and closing. 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