Final answer:
An escrow account suggested by the lender ensures that funds are available to cover expenses such as property taxes and home insurance. It acts as a neutral third party and provides protection for the lender's investment.
Step-by-step explanation:
An escrow account suggested by the lender serves the purpose of ensuring that funds are available to cover expenses such as property taxes and home insurance. It acts as a neutral third party that holds the money until certain conditions are met, such as the completion of a home purchase. The lender suggests an escrow account to ensure that these expenses are paid on time and to provide protection for their investment.