Today’s real estate word of the day is going to be escrow analysis, we’re going to have Shawna Questo, luxury real estate broker, read that to you. So we’re going to read the definition. OK, then we’re going to use it in a sentence and quickly discuss it.
Ok, escrow analysis. Once each year, your lender will perform an escrow analysis to make sure they are collecting the correct amount of money for the anticipated expenditures.
Very good. Thank you. And so the analysis they’re trying to find out is, do you have too much money? Do you have too little money? And with your escrow account, you’re putting in impounds for taxes and insurance. Most likely you’re putting in what is the supposed one 12 equal payments so that you have the correct amount of money to make these payments from your from your escrow account directly to whoever those people happen to be correct on your behalf.
Yeah, and it’s possible that you have a shortage or an overage and then they have to reconcile your escrow account and be like, hey, you’re sure you have too much money? You need more money. Yeah. Whatever that happens to be.
Yeah. So it happens. And that’s something to pay attention to with all these prices going up like crazy and taxes when you clothes are based on the previous year. So I’d be careful there.