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I am so confused....escrow, closing cost, taxes...
When you go to closing are you paying 1+year worth of taxes + closing costs (ie the 3-6%) or is that part of the 3-6%
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Posted 4/12/11 11:50 AM  |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: I am so confused....escrow, closing cost, taxes...
I believe that the escrow is part of your closing costs. Have you received a closing cost work sheet or good faith estimate from your bank yet? That will outline for you exactly what is included in the closing costs..
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| Posted 4/12/11 12:33 PM |
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b2b777
LIF Adult
Member since 9/09 4474 total posts
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Re: I am so confused....escrow, closing cost, taxes...
Yes, that is part of your closing costs, but remember that GFE's will typically list everything as the lowest possible outcome. So in the case of escrow I saw that most ppl quoted 1 month of everything, when in actuality they needed 8-12 months.
My closing costs wound up being 6k higher than the GFE stated.
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| Posted 4/12/11 12:39 PM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: I am so confused....escrow, closing cost, taxes...
You see now I thought it was the opposite. I thought that the GFEs are listed at a higher outcome as the banks were having issues in the past with closing costs being too much higher than they originally stated they would be..
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| Posted 4/12/11 12:40 PM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
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Re: I am so confused....escrow, closing cost, taxes...
Posted by KS13
You see now I thought it was the opposite. I thought that the GFEs are listed at a higher outcome as the banks were having issues in the past with closing costs being too much higher than they originally stated they would be..
I thought the same as you.... for us pretty much everything came in lower the the GFE.
I didn't think it was 1 year of taxes, I thought just 6 monhts... it depends on the timing of your closing and when tax payments are due/when they were last paid.
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| Posted 4/12/11 1:05 PM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: I am so confused....escrow, closing cost, taxes...
Posted by caps612
Posted by KS13
You see now I thought it was the opposite. I thought that the GFEs are listed at a higher outcome as the banks were having issues in the past with closing costs being too much higher than they originally stated they would be..
I thought the same as you.... for us pretty much everything came in lower the the GFE.
I didn't think it was 1 year of taxes, I thought just 6 monhts... it depends on the timing of your closing and when tax payments are due/when they were last paid.
Yes..I also think that we were specifically told that the taxes and insurance being held in escrow was for one year..but again, like you said I think it depends..
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| Posted 4/12/11 1:08 PM |
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Re: I am so confused....escrow, closing cost, taxes...
Posted by KS13
I believe that the escrow is part of your closing costs. Have you received a closing cost work sheet or good faith estimate from your bank yet? That will outline for you exactly what is included in the closing costs..
No not yet!!! I am just afraid of the number coming my way!!!
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| Posted 4/12/11 1:10 PM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: I am so confused....escrow, closing cost, taxes...
You got me wondering now, so I just contacted my bank 
My broker stated that it will be very close to what we are quoted. Might be off in the hundreds..NOT the thousands though..thank goodness 
When you get your GFE, ask your bank point blank how close it will be to what the costs will actually be.
I trust my broker as much as I can really trust anyone who is making money of off me ...
but seriously he seems on the up and up and even stated he likes to attend the closings personally to make sure that his clients are happy.
Let's hope that is indeed the case..
Again- wait until you get the GFE and take it from there.
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| Posted 4/12/11 1:56 PM |
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Re: I am so confused....escrow, closing cost, taxes...
I got an estimate (not an official GFE) and we went over it all. I feel better. He said that he always over estimates it so it doesn't hurt so bad if it is that exact number or less. Please god Less
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| Posted 4/12/11 4:08 PM |
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KS13
Life is good.
Member since 6/10 1203 total posts
Name:
K
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Re: I am so confused....escrow, closing cost, taxes...
Posted by CookieMomster
I got an estimate (not an official GFE) and we went over it all. I feel better. He said that he always over estimates it so it doesn't hurt so bad if it is that exact number or less. Please god Less
Good..I am glad you feel better 
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| Posted 4/12/11 4:34 PM |
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