[gan08]

I just got a GFE from a banker.
There are prepaid expenses such as "Fire and Hazard insurance" prepaid for 1 year and "Hazard insurance escrow" prepaid for 3 month. The closing date is approx April.

Anyone good at explaining these charges? Aren't they pretty much the same thing?

What if I designate my insurance like AAA to insure the house, does these expenses gets eliminated from the GFE?

TIA.

[mpimping]

it's just an estimate of what they could be... no it's just an estimate not a bill...

[gan08]

but they added toward to the closing cost.. isn't that something I need to pay when closing?

[mpimping]

Originally Posted by gan08

but they added toward to the closing cost.. isn't that something I need to pay when closing?

NO it's just an estimate of what you could incur. some charges have nothing to do with the lender and they don't know what you will be charged but by law have to provide an estimate...

[LACSTER]

Originally Posted by gan08

I just got a GFE from a banker.
There are prepaid expenses such as "Fire and Hazard insurance" prepaid for 1 year and "Hazard insurance escrow" prepaid for 3 month. The closing date is approx April.

Anyone good at explaining these charges? Aren't they pretty much the same thing?

What if I designate my insurance like AAA to insure the house, does these expenses gets eliminated from the GFE?

TIA.

It exactly what it's named. The gfe will give you a close estimate of what you're looking to see at closing. If you're purchasing a home then most of the time it'll make you pay the hazard paid in full for one year and also collect an 2-3 additional month for a cushion just in case your premium goes up next year the lender has enough to pay out. Depending on when you close for example if you sign your docs on Friday the 6th. The bank with collect interest from the 7th until the end of the month and you're first payment will be due 04/01/09 because interest is paid in the rears. No pun intended! They probably use a basic insurance quote but if you can supply them with your quote they'll use that. All you need to worrie about is points if there is any oh and also ysp which is what the broker is getting back from the lender. Hope this helps.

[mpimping]

Originally Posted by LACSTER

It exactly what it's named. The gfe will give you a close estimate of what you're looking to see at closing. If you're purchasing a home then most of the time it'll make you pay the hazard paid in full for one year and also collect an 2-3 additional month for a cushion just in case your premium goes up next year the lender has enough to pay out. Depending on when you close for example if you sign your docs on Friday the 6th. The bank with collect interest from the 7th until the end of the month and you're first payment will be due 04/01/09 because interest is paid in the rears. No pun intended! They probably use a basic insurance quote but if you can supply them with your quote they'll use that. All you need to worrie about is points if there is any oh and also ysp which is what the broker is getting back from the lender. Hope this helps.

a banker doesn't disclose how much they make only brokers. they can still hit yo at the closing with extra fees. you don't have to escrow but your rate will probably be higher...

[LACSTER]

Originally Posted by mpimping

a banker doesn't disclose how much they make only brokers. they can still hit yo at the closing with extra fees. you don't have to escrow but your rate will probably be higher...

Word! I miss doing loans!

[mpimping]

Originally Posted by LACSTER

Word! I miss doing loans!

no u don't it sucks...

[LACSTER]

Originally Posted by mpimping

no u don't it sucks...

You probably wasn't good at

[StrifeM3]

Originally Posted by mpimping

no u don't it sucks...

not good times