When buying or refinancing a home, escrow fees are one of several costs you’ll encounter along the way. These fees are paid to a neutral third party—typically an escrow or title company—to manage the transfer of funds, documents, and ownership during the closing process.
At V.I.P. Mortgage Las Vegas, we believe every homeowner should feel confident about what they’re paying for. Let’s break down what escrow fees are, what they cover, and who typically pays them.
What Are Escrow Fees?
Once your offer is accepted on a home, the transaction enters the escrow process—a secure period where funds and documents are held by a neutral third party while the sale is finalized.
Escrow fees are part of your total closing costs and are paid to the escrow company, title company, or real estate attorney managing the transaction. These fees help cover:
Document preparation
Transfer of ownership
Funds disbursement to all relevant parties (lender, seller, taxing authority, etc.)
These services ensure everyone is paid fairly and that the transaction is handled legally and professionally.
Escrow Fees After Closing
Once your home purchase is complete, you may continue to have an escrow account tied to your mortgage.
This account is managed by your lender and used to pay property taxes and homeowners insurance on your behalf. Each month, a portion of your mortgage payment goes into this account.
Good news: There’s no additional fee to maintain this account—it’s included in your mortgage servicing.
What Do Escrow Costs Include?
Escrow fees can vary by location, but they generally cover the following:
Escrow or attorney fees for managing the transaction
Mortgage origination fees (from the lender)
Title insurance
Real estate agent commissions (if paid through escrow)
Prepaid property taxes and homeowners insurance
Any profits owed to the seller
The term “being in escrow” refers to this period of time when funds are held until all parts of the sale are completed.
How Much Do Escrow Fees Cost?
On average, escrow fees range from 1% to 2% of the home’s purchase price.
For example, on a $350,000 home, you could expect to pay:
$3,500 – $7,000 in total escrow-related costs
These may be charged as a percentage or a flat fee depending on the escrow company, lender, and your state’s regulations.
Who Pays the Escrow Fees?
Escrow fees are negotiable. Typically, the buyer and seller split the cost, but this can vary depending on your location, lender guidelines, and how the contract is negotiated.
In Nevada, it’s common for buyers and sellers to divide escrow and title fees equally
In other markets, sellers may cover more as part of concessions
Your real estate agent will help structure your offer to reflect who pays what.
Does V.I.P. Mortgage Las Vegas Offer Escrow Services?
Yes! As part of our mortgage servicing, we maintain escrow accounts for our clients to ensure:
Timely property tax and insurance payments
No unexpected bills or penalties
Clear annual statements and analysis of your account
You can choose to make these payments monthly or annually, depending on your loan structure.
Learn more about mortgage servicing with V.I.P. Mortgage
Final Thoughts: Escrow Fees Are Necessary—and Negotiable
Escrow services provide essential protection for both buyers and sellers, ensuring a smooth and secure real estate transaction.
While the fees aren’t optional, they are negotiable, and understanding what they cover can help you avoid surprises at closing.
At V.I.P. Mortgage Las Vegas, we’re committed to giving you a full picture of your mortgage costs from day one—so you can close with confidence.
Start your application today or schedule a personalized mortgage consultation to get clarity on your closing costs.
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