I’m closing next week on my first house and the mortgage guy just informed me that i have to pre pay a full yr of homeowner up front out of pocket. Others are telling me that this is usually included in the closing costs. In my case the owners are paying all closing costs. This was never disclosed to me and now I have to come up with an additional ,000 that could have went towards new appliances that the home needs. Anyone else have any idea if I can include in the closing costs?

 

  • kemperk 8:27 pm on August 26, 2010

    I am guessing your real estate agent
    [if you used one] did not look out for
    your interests very well.

    Normally, insurance firms need to
    provide a full year’s of insurance
    to cover the property for the mortgage
    company.

    ASK your agent to show you what
    is covered in your closing costs.

    MUCH to many people’s surprise,
    closing cost’s responsibility is
    negotiable, though many costs
    are CULTURALLY assigned to
    one party or the other.

    AT this stage, it is unlikely you can
    amend the purchase contract if
    it was not specified who pays for
    the insurance. However, if you don’t care if the deal clears, you can
    state "lady title officers and /or
    real estate agent, I do need to have
    the insurance on the house prepaid
    by the seller."

    That might not cause a problem
    and it could also be a deal breaker.
    but you can ask–you can always ask.

    since you are indicating that it
    is simply a way to get more appliances
    faster, MY suggestion is to be
    VERY casual about this cost and
    if you must pay it, then pay it and
    learn from it.

    thanks for asking

  • T Taylor 8:27 pm on August 26, 2010

    This is considered a "pre-paid" item, not a closing cost. This is your realtors fault for not asking that all closing costs AND pre-paid items be included in what the seller covers. If you look at your Good Faith Estimate, you will see the items that are under pre-paid items.

    I would shop around a little for homeowners insurance. It can vary a lot in price – just like auto insurance.

  • glenn 8:27 pm on August 26, 2010

    You will pay a full year of homeowners insurance up front at closing. How much that costs will depend on which policy you buy. You can get different deductibles and different companies. All the mortgage company cares about is that your home is covered but you probably want a standard homeowners policy that covers a lot of liability and belongings of yours.

    Depending on how your contract was written this might be considered "closing costs" and might be paid by the seller. Normally the contract has a definition of closing costs and also has a limit (up to $XXX).

    • People are reading:

    home owners insurance wants to payment up front, homeowners year up front, does buyer pay home owners insurance upfront at closing, is my first year of homeowners insurance a prepaid item, homeowners insurance paid upfront at closing, how does the first year of homeowners insurance get paid when buying a home, how much hazard insurance is required to be paid up front?, i can\t pay the first years homeowners insurance, is my first year of house insurance included in the prepaids, new home owner insurance first year, up-front out, upfront home owners insurance, why does hazard insurance need to be paid in full up front, homeowners insurance closing can i pay ahead, bought my homeowners insurance does that mean im going to close, home owners insurance up front, can fha make you pay homeowners insurance for a year up front, can I have my first year homeowners insurance payment worked into my closing costs?, can prepaid homeowners insurance be payed by seller, cant pay for flood insurance upfront, do i have to pay my homeowners insurance up front, do i have to pay my homeowners insurance up front with fha, do you have to pay homeowners insurance up front when buying a home, do you have to pre pay homeowners insurance when closing, does home owners insurance get paid at closing, does your first homeowners insurance paymkent come off closing costs, Home insurance at closing pre pay a year, why you pay home insurance up front