Establishing Escrow Accounts

Overview

When presenting loan quotes, the cash due at closing includes escrow account establishment for property taxes and insurance. Deal Details offers two calculation methods: an automated approach using county-specific tax data, or a manual method for loan officers who prefer consistent quoting. Understanding when to use each method helps you deliver accurate estimates that align with final closing disclosures.

Before You Start

Requirement	Details
Active deal	Open an existing deal or create a new one with property address entered
Property location	Address must be set so the system can pull county-specific tax data
Edit Key Metrics access	You'll configure escrow settings within the Edit Key Metrics panel

Step-by-Step: Configuring Escrow Calculations

1. Access the Edit Key Metrics Panel

Open your deal
Navigate to the Edit Key Metrics section
Locate the Escrow and Proration Criteria settings

2. Choose Your Calculation Method

Method	How It Works	Best For
Automatic (Default)	Uses Deal Details' proprietary database covering all 3,145 U.S. counties with actual tax due dates and billing cycles	Loan officers who want precise, county-accurate escrow figures
Manual	Applies standard 6 months for property taxes, 3 months for homeowners insurance	Loan officers who prefer consistent quoting regardless of location

3. Set to Automatic for Precision Quoting

Leave the Escrow and Proration Criteria toggle in the default position
The system automatically calculates based on:
- County tax due dates (including split payment schedules)
- Tax bill release timing
- Closing date relative to payment cycles

⚠️ Important: The automatic calculation adjusts escrow months based on your closing date. A February closing might show 7 months for county taxes and 3 months for insurance because the system knows your specific county's tax calendar.

4. Switch to Manual for Consistent Quoting

Flip the Escrow and Proration Criteria switch to Manual
System defaults to 6 months property taxes, 3 months homeowners insurance
The aggregate adjustment line item will disappear from your quote

5. Adjust Manual Values (Optional)

With Manual selected, you can modify the month counts
Reduce property tax months (e.g., to 5 months) if you want to show lower cash-to-close
Changes reflect immediately in the quote totals

Understanding the Automatic Calculation

What the Database Knows

Data Point	Coverage
Tax due dates	All 3,145 U.S. counties
Payment schedules	Single or dual payment dates per county
Bill release timing	When tax bills are issued in each jurisdiction

Why Numbers Vary by Closing Date

The system calculates escrow establishment based on how many months of reserves are needed between your closing date and the next tax payment. A deal closing in February will show different escrow months than one closing in August for the same property.

Finishing Up / Next Steps

1. Verify Against Closing Disclosures

After closings, compare your Deal Details escrow figures to the actual closing disclosure
The automatic calculations are designed to match what closing attorneys and title companies produce

2. Choose Your Standard Approach

Decide whether your workflow benefits more from precision (automatic) or consistency (manual)
You can switch between methods on a deal-by-deal basis

Quick Reference

Edit Key Metrics → Escrow and Proration Criteria → Choose Automatic or Manual → Adjust months if Manual → Review cash-to-close total

Tips for Success

Test against real closings to see how closely automatic calculations match your closing disclosures
Use Manual mode when you want predictable quotes across all markets without location-based variation
Lower manual months strategically to show competitive cash-to-close, but ensure estimates remain realistic
Trust the county data because Deal Details maintains tax calendars for every U.S. county, including dual-payment jurisdictions