Dulcee
09-06-2011, 05:17 PM
I'm hoping someone here can explain this to me...
Our seller has agreed to X amount towards closing, which should cover all but $200 of our final closing costs including prepaids. In addition our real estate agent is bouncing back a 1/4 of her commission to us due to the Homes for Heroes program which will cover the remaining. We are working with a FHA loan thus the seller's closing concessions and our real estate agent's commission can be applied towards prepaids. One prepaid is obviously our home insurance for year 1.
To close I know we need our homeowner's insurance in place. How does this work if seller's funds are going towards it? Do we lay it out, it gets written into the Good Faith Estimate and we get it back at closing? Or since we supplied our insurance agent's contact info to our loan officer, does it all go through them? I have a call out to our Loan officer but due to it being after 5 I doubt I'll hear back from her today and I'm just trying to get this straight in my head.
Any explanations would be greatly appreciated. Sometimes I feel like I'm learning a whole other language just to get through this process!
Our seller has agreed to X amount towards closing, which should cover all but $200 of our final closing costs including prepaids. In addition our real estate agent is bouncing back a 1/4 of her commission to us due to the Homes for Heroes program which will cover the remaining. We are working with a FHA loan thus the seller's closing concessions and our real estate agent's commission can be applied towards prepaids. One prepaid is obviously our home insurance for year 1.
To close I know we need our homeowner's insurance in place. How does this work if seller's funds are going towards it? Do we lay it out, it gets written into the Good Faith Estimate and we get it back at closing? Or since we supplied our insurance agent's contact info to our loan officer, does it all go through them? I have a call out to our Loan officer but due to it being after 5 I doubt I'll hear back from her today and I'm just trying to get this straight in my head.
Any explanations would be greatly appreciated. Sometimes I feel like I'm learning a whole other language just to get through this process!