Home Buying in 49660>Question Details

Henryml, Home Buyer in Manistee, MI

I am quoting 2 lenders in Michigan. They are coming up with wildly different figures for my prepaid taxes

Asked by Henryml, Manistee, MI Sun Jun 7, 2009

due at closing. I understand the 4 month factor for escrow, but the other figure is confusing me. Basically, one is adding the entire 1st year's taxes. The other only the summer taxes which are due in August.

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good morning henry......tony is right.....the title co. facilitating your closing can tell you if the property taxes in your county are paid ahead, or not....i always have used 13 months of property taxes to figure both tax proration and a sufficient contribution to your escrows....lastly.....if the home you are buying is homesteaded or not is important.....and if you plan to live in the home....if the home is a foreclosure, or non-homestead for any reason, the amount of pre-paids will show higher since the proration is based upon homestaed expemtion or not....i hope that helps.bob mcclure- success mortgage partners- plymouth, michigan......
0 votes Thank Flag Link Mon Jun 8, 2009
Since most counties in Michigan collect taxes IN ADVANCE, if you are escrowing for taxes and insurance then you should expect to need about a full year's worth of taxes at closing. Part of the 12 mos will go towards re-imbursing the seller for taxes they have pre paid on your behalf. The remainder will be deposited into your escrow account so that, combined with your monthly escrow payments, there is enough $$ in the escrow account to pay each tax/insurance bill as it becomes due
0 votes Thank Flag Link Sun Jun 7, 2009
It sounds like one is being more conservative than the other ... or they are either calculating it differently, and/or using the wrong numbers. Have your agent contact the municipality to find out exactly what the taxes are (or you can do this yourself), and request each loan officer to use those figures and re-work their numbers. You should then be able to more easily compare apples to apples.
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Sun Jun 7, 2009
Hi, Go to this area of Mich.gov and you will be able to estimate your taxes easily. This is what I use when helping my clinets estimate the taxes and affordability. Here is the link. Just copy and paste it in your address bar and it will help you. It's very user friendly. I hope this helped... Kathy
https://treas-secure.state.mi.us/ptestimator/ptestimator.asp
0 votes Thank Flag Link Sun Jun 7, 2009
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