Escrow is a process in which a neutral third party holds onto something of value, such as money or documents, during a real estate transaction. This helps to ensure that both the buyer and seller fulfill their contractual obligations before the transaction is completed.

For example, when you're buying a home, you typically put down a deposit as a sign of good faith. This deposit is held in escrow until the transaction is complete. Once all the terms of the contract are met and the transaction is complete, the funds held in escrow are released to the appropriate party.

Escrow can also be used to hold other important documents, such as the deed to the property, until all the necessary steps of the transaction are completed. 

An inspection is an important step in the home buying process where a professional inspector evaluates the condition of a property. The inspection is typically paid for by the buyer and may cover various aspects of the property, such as the foundation, roof, plumbing, electrical systems, HVAC systems, and other components.

During the inspection, the inspector will provide a detailed report of any issues they find, such as defects or safety hazards, and offer recommendations for repairs or maintenance. This information can help the buyer make an informed decision about the property and negotiate with the seller for any necessary repairs or credits.

Overall, getting an inspection is an important step in protecting yourself as a buyer and ensuring that you're making a wise investment in a property.


A mortgage is a type of loan that is used to purchase a property, such as a home or commercial building. With a mortgage, a lender (such as a bank or other financial institution) provides funds to the borrower to purchase the property. The borrower then makes monthly payments to the lender over a period of time, typically 15-30 years, until the loan is fully paid off.

Mortgages are secured loans, meaning that the property being purchased serves as collateral for the loan. If the borrower fails to make their mortgage payments, the lender may foreclose on the property to recover the remaining balance of the loan.

Mortgages come in different types, with varying interest rates, payment schedules, and other terms. It's important to shop around and compare different mortgage options to find the one that best fits your financial situation and goals.


An appraisal is an evaluation of the value of a property conducted by a licensed appraiser. The appraiser uses various methods to determine the property's value based on factors such as its location, size, condition, and recent sales of comparable properties in the area.

Appraisals are often required by lenders when a property is being purchased or refinanced. This is because the lender wants to ensure that the property is worth at least as much as the amount of the loan being provided. If the appraised value of the property is lower than the loan amount, the lender may require the borrower to put more money down or renegotiate the terms of the loan.

Appraisals can also be useful for buyers and sellers who want to get an objective assessment of a property's value before buying or selling. This information can help both parties make informed decisions about the transaction and negotiate a fair price.


Earnest money, also known as a good faith deposit, is a sum of money that a buyer puts down as a sign of their serious intent to purchase a property. This deposit is typically held in an escrow account until the closing of the transaction.

The amount of earnest money can vary, but it's usually a percentage of the purchase price of the property, typically around 1-2%. The purpose of the earnest money is to show the seller that the buyer is committed to the transaction and has the financial means to complete the purchase.

If the sale goes through, the earnest money is applied towards the down payment or closing costs of the property. However, if the sale falls through due to a failure to meet certain conditions (such as a failed inspection or financing contingency), the earnest money may be forfeited to the seller as compensation for the time and effort they put into the transaction.

Overall, earnest money is an important part of the real estate transaction that demonstrates the buyer's commitment and can help secure the purchase of the property.


An escrow account, also known as an impound account, is a part of a mortgage that is set up by the lender to hold funds for the payment of property taxes, homeowners insurance, and sometimes other fees such as mortgage insurance.

When a borrower obtains a mortgage, the lender may require that they establish an escrow account to ensure that these expenses are paid on time. This is because property taxes and insurance premiums are typically due annually or bi-annually, and the lender wants to make sure that these expenses are paid in a timely manner to protect their interest in the property.

Each month, the borrower's mortgage payment includes an amount that is set aside in the escrow account to cover these expenses. When the payments are due, the lender will use the funds in the escrow account to pay the bills on the borrower's behalf.

Having an escrow account can be beneficial for borrowers because it ensures that their property taxes and insurance premiums are paid on time and helps them avoid late fees or other penalties. It also allows borrowers to spread out the cost of these expenses over the course of the year rather than paying a large lump sum all at once



The average real estate transaction timeline can vary depending on several factors, including the complexity of the transaction, the financing and appraisal process, and the local laws and regulations. However, on average, a real estate transaction can take around 30 to 45 days from the moment an offer is accepted until the buyer gets the keys to the property.

During this time, the buyer will typically undergo a mortgage application and approval process, which can take several weeks, and the property will undergo various inspections and appraisals to ensure that it meets the buyer's standards and that the transaction complies with local regulations.

Once all the necessary steps have been completed, the closing date will be set, and the buyer will sign the final paperwork and pay any outstanding fees or taxes. The seller will transfer the ownership of the property to the buyer, and the keys will be handed over. 


When looking for a lender for a real estate transaction, there are several important factors to consider, including:

  • Interest rates: The interest rate on a loan is one of the most important factors to consider when looking for a lender. A lower interest rate can mean lower monthly payments and overall savings over the life of the loan.
  • Loan terms: The terms of a loan, including the length of the loan and any fees or penalties, should also be carefully considered. Some lenders may offer more flexible repayment options or lower fees than others.
  • Reputation: The reputation of the lender is also important. Look for a lender with a track record of reliability and transparency, and check reviews and ratings from other customers.
  • Customer service: Good customer service can make a big difference in your experience with a lender. Look for a lender who is responsive, easy to communicate with, and who takes the time to answer your questions and address your concerns.
  • Experience in real estate lending: Choosing a lender with experience in real estate lending can provide you with valuable insights and guidance throughout the lending process.
  • Availability of loan products: Consider the range of loan products offered by the lender. If you have unique financing needs, you may need a lender that offers specialized loan products or is willing to work with you to find a solution that meets your needs.

Overall, it's important to take the time to research and compare lenders to find the one that offers the best combination of interest rates, loan terms, reputation, customer service, and experience for your real estate transaction.


Work With Peter

Navigating the sale or purchase of a home can be one of the biggest and most worrisome seasons of life. Peter's goal is that, by answering questions, providing education on the process, and being available, he will be able to help make that season a sweet and wonderful journey.

Follow Me on Instagram