How does one choose an escrow service when purchasing or refinancing a single-family, commercial property, or mobile home. If you have never used escrow services before, it may be a difficult question to answer.

First, let’s clarify what an escrow service does, then we will look at what to look for when choosing a company. Escrow is a service that acts as a third party who holds cash while a transaction, usually property, is being worked out. The escrow agency ensures that the transaction is legitimate and agreed upon by both parties and then releases the funds.

When choosing an escrow service the first thing to check is if they specialize or have experience with the particular type of property you are purchasing. Some providers only deal with commercial, other residential, some both. Also, you want to make sure they are experienced with doing transactions in your area. Different states have different laws, so make sure you go with a provider who knows the laws in the are of purchase.

Secondly, reputability. You want to be able to trust someone who is holding large amounts of money. Look for reviews online, ask people you know who have done a similar transaction to the one you are looking at making.

Lastly, compare the costs. All providers charge a fee, some are higher than others. But you should consider reputability and experience when looking at fees.