Financing in 30306>Question Details

cwspaige56, Other/Just Looking in Atlanta, GA

if you close on a home in November how many months of taxes & insurance will I be expected to the table?

Asked by cwspaige56, Atlanta, GA Fri Oct 5, 2012

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Every county collects taxes at different times. So here's how to calculate property tax escrow. There are 12 months in a year. So, you have to pay for 12 months. The seller will then credit you back from Jan 1 to the day before you close. You will pay property taxes from the day of close to the end of the year. If you escrow, you'll need an extra 3 or 4 months, depending on the lender. So, look to pay for 4 months with escrow, 2 without.
If the seller already paid taxes for the year, the table flops. You'll owe the seller taxes from the date of close to Dec 31. Either way, you'll pay the same thing, perhaps just to different people., depending on who paid what.
Also, be aware of city and county taxes, if applicable.
0 votes Thank Flag Link Thu Oct 11, 2012
The GFE gives you the answer, but it does not show how much in taxes you have to repay the seller for prepaid taxes. If you know when real estate taxes are due, your mortgage officer can help you.
0 votes Thank Flag Link Sun Oct 7, 2012
That is really going to be a question best left for your Loan Officer. AS part of the mortgage process, you will receive an estimate breaking down this information.

In general, a 12 month paid insurance policy will be required at closing. For the escrow portion of the home owner's insurance, 2-3 months will be collected.

Property taxes are much more complex. Ther are many variables in that as to what exactly will be collected.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Sat Oct 6, 2012
That question really needs to be answered by your lender. It depends upon how much of a cushion your lender requires and when the taxes on your new house are due. If they are due Jan 1st, and your lender requires a three month cushion, then you could have to bring as much as 14 or 15 months of taxes and insurance. Every lender and every loan is different, so run this by your lender for a more accurate response.
0 votes Thank Flag Link Sat Oct 6, 2012
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