Escrow companies make sure that the transaction runs smoothly, that all parties involve uphold the terms they agreed upon, that all paperwork is accurate and in order, Funds have the correct amounts and can be accessed.
Benefits of an Escrow Account: One of the biggest, if not the biggest benefit of an escrow account is that the client is protected during a real estate transaction. An escrow account also protects the homeowner, making sure they have the money to pay for their property taxes, as well as Homeowners insurance when they are due.
Cons of an Escrow Account: Mortgage payments are higher, fluctuating mortgage payments as taxes and insurance are subject to change.