Escrow Explained What Home Buyers Need to Know!

By the way, if you're confused about the term escrow, escrow can refer to what I'm talking about, about holding your earnest money deposit check in escrow. When you get a loan to purchase a property, you can also have your homeowner's insurance, your taxes escrowed and then paid out of an escrow account. So escrow can mean a number of different things. If you're curious about wanting to dig into that term a little bit more, check out my video, the video card above, where I go into detail about the word— what the word escrow means in real estate. As far as your earnest money deposit being credited toward the purchase, if everything goes smoothly and you close on the home, this earnest money deposit typically goes toward your down payment or your closing costs.