Financing in Schaumburg>Question Details

Jj, Home Buyer in Naperville, IL

Question regarding taxes and pre-paids

Asked by Jj, Naperville, IL Sat Feb 11, 2012

I have a question regarding what I'm going to need to bring to closing.

We received a GFE from the lender we are using. In the total settlement charges, it states that the "initial deposit for your escrow account" will be around $4700, for all property taxes and insurance. We are getting roughly $6600 from the seller for the entirity of 2011's taxes, plus another $1050 from Jan and Feb of this year, since we are closing in March. Is the money we are getting going to "offset" the $4700, or is this the deposit we have to make in advance for when the tax bill comes in 2013? Thanks!

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Answers

8
You need to ask your attorney/title company to explain the answers to your questions.

sharonharding@remax.net
0 votes Thank Flag Link Sat Feb 11, 2012
McHenry County would not make a difference versus Cook County. Feel free to e-mail me with any further questions. Gary@illinoisrates.com
0 votes Thank Flag Link Sat Feb 11, 2012
The closing is actually in Mchenry county - does that make a difference?
0 votes Thank Flag Link Sat Feb 11, 2012
JJ -- Your lender (and attorney) should certainly go over this with you. Cook County taxes are particularly confusing since we are so much in arrears, and different lenders handle escrows quite differently.

Good luck with your smooth closing!

Michael
0 votes Thank Flag Link Sat Feb 11, 2012
The credit wil offset your initial $4,700 escrow deposit plus you will most likely get a check to bring home as long as the rest of your closing costs are not too high. Most likely you will not need to bring anything besides your down payment on your mortgage. Feel free to e-mail me with any other questions, gary@illinoisrates.com.
0 votes Thank Flag Link Sat Feb 11, 2012
Thanks Lyn. Can you explain how it is offset? When we go to closing will we need to have that $4700?
0 votes Thank Flag Link Sat Feb 11, 2012
It is offset. The seller gives you credit up & until the closing date even though the taxes were not due & payable as of yet. Hopefully, your lender could explain this to you & your agent.
Web Reference: http://www.LynSims.net
0 votes Thank Flag Link Sat Feb 11, 2012
They will explain this all in detail @ the closing. If you have particular questions now, just call your lender.
0 votes Thank Flag Link Sat Feb 11, 2012
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