What happens to your money after your offer is accepted on a Tannersville home? If you are new to Pennsylvania closings, the word “escrow” can feel mysterious. You want to move forward with confidence and keep your funds safe. In this guide, you will learn exactly what escrow is, who holds your deposit locally, how money moves from offer to keys, and what to do at every step. Let’s dive in.
Escrow, simply explained
Escrow is a neutral holding arrangement. A third party keeps your money and key documents until the contract conditions are met. The escrow holder follows written instructions in your purchase agreement and releases funds at closing.
Your earnest money is your good‑faith deposit. It shows the seller you are serious and is applied to your cash due at closing. If you cancel within a valid contingency and follow the contract, you typically get it back. If you default without a contractual right to cancel, the seller may have remedies that can include keeping the deposit.
Who holds your money here
In Pennsylvania, the escrow holder can be a title or settlement company, a closing attorney, a dedicated escrow company, or a licensed real estate broker’s trust account. In Monroe County, many transactions use a title company or attorney as the settlement agent, especially when a lender is involved.
Your purchase contract names the escrow holder and the deposit deadline. Always confirm who holds the funds, how to deliver them, and get a written receipt.
From offer to closing: money flow
The typical Tannersville timeline runs about 30–45 days, depending on loan type, inspections, and title work. Here is how your money moves from start to finish.
Step 1: Offer and acceptance
- You sign a purchase agreement that sets the earnest money amount, escrow holder, and deadlines for inspections, financing, and closing.
- Earnest money is negotiable. Many buyers offer 1-3 percent of the price. Strategy depends on local conditions and your goals.
Step 2: Earnest money deposit
- You deliver the deposit within the deadline in your contract, often 24–72 hours after acceptance.
- Payment can be a check, wire, or electronic transfer. The holder provides a receipt. Save it with your contract.
Step 3: Inspections and contingencies
- Schedule inspections quickly. Many buyers use a 7–10 business day window for general and specialized inspections (radon, septic, well, pest, as needed).
- Your financing contingency typically runs about 21–30 days. If you cancel within a valid contingency period and give proper written notice, your earnest money is usually returned per the contract.
Step 4: Loan, appraisal, and title search
- After loan application, the lender orders an appraisal and underwrites your file. The appraisal must support the loan.
- The title company or attorney runs a title search, clears liens, and prepares title insurance commitments. If issues appear in county records, clearing them can add days or weeks.
Step 5: Closing Disclosure and prep
- Federal rules require your lender to provide the Closing Disclosure at least 3 business days before closing.
- The settlement agent prepares the final settlement statement with all debits and credits for buyer and seller.
- You arrange your remaining cash to close. Follow the settlement agent’s instructions. Verify any wiring details by phone using a known, trusted number.
Step 6: Closing day and funding
- You sign final documents in person or remotely, depending on what your lender and settlement agent allow.
- Your lender wires loan funds to the settlement agent. You send your balance by wire or certified/cashier’s check as required.
- The settlement agent pays off seller mortgages, pays commissions, transfer taxes, and fees, and issues the seller’s proceeds.
Step 7: Recording and keys
- The deed (and your mortgage, if applicable) are recorded with Monroe County.
- Recording confirms legal transfer. Keys are delivered at closing or after recording based on your agreement.
- Your title insurance policy is issued after closing.
Typical Tannersville timelines
While every sale is unique, many Monroe County transactions follow this rhythm:
- Earnest money due: within 1–3 days of acceptance.
- Inspection period: often 7–10 business days.
- Mortgage processing and appraisal: commonly 21–45 days.
- Clear to close and final scheduling: varies by lender and title clearance.
- Overall time to close: typically 30–45 days. Some loans or title issues can extend to 60+ days.
Earnest money: how much and when
There is no set amount for earnest money. The 1-3 percent range is common in many markets and is often used here, but the right number depends on the property, competition, and your comfort level. A larger deposit can signal strength, but it should fit your budget and risk tolerance.
Your deposit is applied to your closing funds. If you exercise a contingency properly with timely written notice, you usually receive a refund. If you default after contingencies expire, the seller may have contractual remedies. Ask your agent to explain the contingency timelines in your specific contract.
Closing costs and what escrow pays
At closing, the settlement agent disburses funds according to the contract and the final settlement statement. Typical items include:
- Title insurance premiums and settlement fees
- Lender fees and prepaids (interest, escrowed taxes and insurance if applicable)
- Recording fees and transfer taxes (as negotiated in your contract)
- Real estate commissions per the listing and buyer agreements
- Payoffs for seller mortgages, liens, or judgments
- Prorated property taxes and HOA payoffs, if any
You will see each item on the Closing Disclosure and the settlement statement before you sign.
Protect your funds from wire fraud
Wire fraud targets real estate closings. Protect yourself by:
- Verifying wiring instructions by calling a known, independently confirmed phone number for your title company or lender.
- Confirming the exact recipient, bank name, and amount on the day you wire.
- Ignoring last‑minute emailed changes. Do not rely only on email.
- Using secure communication and confirming receipt immediately after sending funds.
Your Tannersville buyer checklist
Stay on track with this quick plan from offer to keys:
Before or at offer
- Confirm the escrow holder and the deadline for earnest money.
- Choose your deposit amount with your agent’s guidance.
- Review contingency timelines and mark them on your calendar.
After acceptance and deposit
- Get a written receipt for the deposit from the escrow holder.
- Schedule inspections right away.
- Apply for your mortgage immediately and send documents quickly.
During contingencies
- Track inspection deadlines and submit any repair requests or notices on time.
- Respond promptly to title company requests for information.
One week before closing
- Request wire or certified check instructions from the settlement agent and verify by phone.
- Review your Closing Disclosure carefully.
- Schedule your final walkthrough 24–72 hours before closing.
Closing day
- Bring a government photo ID and proof of funds (wire confirmation or bank check receipt).
- Review and sign documents. Keep copies of everything, including the settlement statement.
Remote and attorney-supported closings
Remote closings are increasingly available when supported by your lender and settlement agent. In Pennsylvania, attorneys often participate in title and settlement. You may also choose to have your own attorney review documents even if it is not required.
Work with a local guide
Escrow does not have to be stressful. With clear steps, realistic timelines, and a settlement team you trust, you can move from offer to keys with confidence. If you want a calm, well‑coordinated path to closing in Tannersville and across the Poconos, reach out to Kacey Conaty for local guidance from the first showing to the final signature.
FAQs
What is escrow in a Tannersville home purchase?
- Escrow is a neutral account where a third party holds your funds and key documents until contract conditions are met, then releases them at closing.
Who holds my earnest money in Monroe County?
- Your contract names the holder. Common options are a title or settlement company, a closing attorney, or a broker’s licensed trust account.
How much earnest money should I expect to pay?
- Many buyers offer 1-3 percent of the price, but the amount is negotiable and depends on the property and local market conditions.
When is earnest money refundable to the buyer?
- If you cancel within a valid contingency and give timely written notice per the contract, your deposit is typically returned.
How long does closing usually take in Tannersville?
- Many transactions close in about 30–45 days, with timelines influenced by inspections, loan processing, appraisal, and title clearance.
What can delay funding on closing day?
- Common causes are appraisal or underwriting delays, unresolved title issues, missing signatures, document errors, or last‑minute payoff problems.
How do I avoid wire fraud when sending closing funds?
- Always verify wire instructions by phone using a known, trusted number, confirm details the day you send funds, and be wary of last‑minute email changes.
