Explaining Escrow: What VA Homebuyers Need to Know

No matter where you purchase, homeowners insurance and property taxes are likely to be part of your future. This is the usual reason why lenders require escrow payments every month -- to ensure that they have enough to pay the insurance and taxes for you. Escrow is a way to safeguard your investment while showing you’re able to deliver on a financial promise. These up-front escrow costs are something you can ask the home seller to cover. For most borrowers, an escrow account is the best way to go. The question is -- is escrow mandatory?

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