topic Re: Loan guys or any new home owner, please help settle this dispute in Mortgage Loans

Loan guys or any new home owner, please help settle this dispute

Anonymous — Tue, 28 Oct 2008 23:33:13 GMT

Ok so Hubby and I are having a dispute on whether your Home owner insurance is rolled into the closing cost at closing. I say no, there is no way they would know how much our annual insurance would be since it is our responsibility to obtain insurance before closing. He says he is sure the mortgage guy said our closing cost included the home owner insurance. So who is right me or him???? Me as usual, right??...lol

Message Edited by lil-ol-me on 10-28-2008 04:33 PM

Re: Loan guys or any new home owner, please help settle this dispute

ShanetheMortgageMan — Tue, 28 Oct 2008 23:33:50 GMT

Like always, the guy is right. The loan officer requests evidence of insurance from the insurance company you select, gets the premium amount info, and the title/escrow company collects for it through the closing as a cost on the Final HUD-1 settlement statement.

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Tue, 28 Oct 2008 23:43:29 GMT

Ok so now I am reaaaaaaaalllllly confused..lol...so if and when we close when we go to closing and lets say the seller is paying closing cost, we are going VA with no funding fee due to hubby diability.then we would pay nothing the day of closing?? I realize we have to pay for appraisal, inspection and termite inspection which is what our realtor informed us the other day. Any other fees I am not thinking of??? Our realtor is pretty new and told us we would need to bring proof of insurance to the table at closing and I questioned him about it because I thought it was odd that our mortgage payment would include insurance and then he claimed we would have to pay a year up front at closing. He said you always have insurance in the mortgage payment but you have to pay a year up front also?? I am soooo confused.......

Re: Loan guys or any new home owner, please help settle this dispute

ShanetheMortgageMan — Tue, 28 Oct 2008 23:53:00 GMT

If seller is paying for everything then they would pick up the tab on the 1st year of homeowners insurance too. The 1st year premium is due at closing, then you pay monthly into a lender's escrow account so the lender has enough money to pay for your homeowners insurance premiums in the upcoming years. This is similar to how property taxes work, you pay into a property tax escrow account and your lender pays your property taxes to the county/city/school, etc. when they come due.

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 00:09:26 GMT

As an insurance agent, i have seen it both ways. Before you can close on your home you must show proof of homeowner's insurance. I have seen that the lender requires to you to show that the insurance is paid for the first year and the years to follow it will be escrow. I have also seen where they just ask for evidence of insurance and they will pay. So it really depends on the lender. I am in the process myself of purchasing a home and my mortgage broker said my insurance will be included in the closing costs.

Re: Loan guys or any new home owner, please help settle this dispute

Watchmann — Wed, 29 Oct 2008 03:08:54 GMT

Yep, it varies. We do not escrow, so we are responsible for the insurance and taxes. When we closed I had prepaid one years insurance and brought evidence of that to the closing table. Then each year I renew it when it comes due. If I go online to my mortgage holder (CitiMortgage) and check my account it has no information on taxes or insurance.

Message Edited by Watchmann on 10-28-2008 10:08 PM

Re: Loan guys or any new home owner, please help settle this dispute

BrianB_The_Loan_Professor — Wed, 29 Oct 2008 05:09:12 GMT

@ShanetheMortgageMan wrote:
Like always, the guy is right. The loan officer requests evidence of insurance from the insurance company you select, gets the premium amount info, and the title/escrow company collects for it through the closing as a cost on the Final HUD-1 settlement statement.

Man I can tell you have only been married a year

wont be much longer and you will find out you are never really right just ocassionally lucky with your answer

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 12:11:24 GMT

@ShanetheMortgageMan wrote:
Like always, the guy is right. The loan officer requests evidence of insurance from the insurance company you select, gets the premium amount info, and the title/escrow company collects for it through the closing as a cost on the Final HUD-1 settlement statement.

!!!!!!

Yeah ok. Whatever.

I've been married to my guy for 17 years in December, and he still thinks he's "always" right. Here's a recent exchange:

Me, Day 1: I think we should get movers to help us move. It's going to just be too much, with us closing on 2 houses in one day & trying to get everything out in time...let's just get some help.

Him, Day 1: Nah, we can do it. I'll call Jim and Bob and Steve (names changed to protect the

innocent) to see if they'll help.

Me, Day 3: Have you called Jim and Bob and Steve?

Him, Day 3: Uh, no. Forgot. I'll call them tomorrow.

Me, Day 5: Have you called Jim and Bob and Steve?

Him, Day 5: Well, Jim is going out of town, but he said maybe he can stop by for an hour or so to help, and Bob said he could help, but Steve hasn't returned my call yet.

Me, Day 5: I still think we should hire movers so we're not stressing over getting our friends to help.

Him, Day 5: Nah, we can do it.

Me, Day 5: *sigh*

*skipped over increasingly snarky exchanges, Day 6 - 10 because you get the idea*

Him, Day 11, via email: You know, I've been thinking. Maybe we should just hire movers to help us - I'm not sure we're going to be able to get the help we need and that would just be easier.

Me, Day 11: !!!*&^$^*)@#&(*^^&(((!!!!! **banging head against desk in frustration**

EDITED TO ADD:

We close on our new house next Friday. According to our GFE, we're paying 3 months of insurance at the table and that will go into our escrow account.

Message Edited by desifink on 10-29-2008 05:11 AM

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 12:31:33 GMT

LOL..That is funny Desifink!!! We have been married 28 soon to be 29 yrs. You and your spouse sound alot like us!!

So as I am understanding the insurnace thing, IF Hubby is correct(and that would be a real shock..lol) then when the mortgage guy said closing cost would be 7300.00 and that included insurance, if the seller is paying 5000.00 in closing cost we would owe the 2300.00 at closing and that INCLUDES the insurance. Right?? If this is right then can we roll that into the mortgage payment? Our Realtor had said any closing cost could be rolled into mortgage payment? I am even close to be right here??lol...

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 12:44:56 GMT

Ask your mortgage guy for a closing cost estimate. This will show exactly what is included in the closing costs and provide an estimate of what you need at closing. It sounds like your LO is saying your total closing costs are $7300, meaning that yes you'd need to bring $2300 if your seller is paying $5000. Really though you need to get a copy of the closing costs estimate so you completely understand what you're needing to bring to closing and what your expenses will be.

If your state allows you to escrow insurance, then yes, it would be included in your monthly payment - but you'll likely need to pay at least three months at closing (as we are) or maybe a year (as others here have).

Re: Loan guys or any new home owner, please help settle this dispute

ShanetheMortgageMan — Wed, 29 Oct 2008 16:06:01 GMT

Where was the guy wrong in that conversation desifink?? LOL, sounds just like my wife and I... she reminds me 6 times to do the same thing (take out some boxes to the trash or what not) and the finally a couple days later I'll do it.

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 16:58:24 GMT

He was wrong by not just saying "Yes, dear, that's a fabulous idea" when I first brought it up, instead of dragging it out into a 2-week process and then trying to pretend it was his brand-new fresh idea.

Re: Loan guys or any new home owner, please help settle this dispute

BrianB_The_Loan_Professor — Wed, 29 Oct 2008 17:03:33 GMT

@Anonymous wrote:
LOL..That is funny Desifink!!! We have been married 28 soon to be 29 yrs. You and your spouse sound alot like us!!
So as I am understanding the insurnace thing, IF Hubby is correct(and that would be a real shock..lol) then when the mortgage guy said closing cost would be 7300.00 and that included insurance, if the seller is paying 5000.00 in closing cost we would owe the 2300.00 at closing and that INCLUDES the insurance. Right?? If this is right then can we roll that into the mortgage payment? Our Realtor had said any closing cost could be rolled into mortgage payment? I am even close to be right here??lol...

Yes you are correct you will have to pay the difference but no you cannot roll that into the mortgage

always ask your finance guy questions regarding your finance and not your RE Agent

You cannot "roll" the closing costs into the mortgage on a purchase only on a refi where you have equity.

You will be making monthly payments that will include your taxes and insurance this may have been what the REA was trying to say.

Good Luck on the Move

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Wed, 29 Oct 2008 18:40:41 GMT

Thanks for everyones replies!! I finally got confirmation on the insurance deal and it sounds like both me and hubby were partially correct

They said yes, when the mortgage guy told DH the estimated closing cost he had included the insurance in that figure but as I understand it we still need to come to the closing with proof of a paid policy and they will refund the price back to us at closing?? Does this sound right? Anyway we are putting the horse in front of the cart because we are still in the counter offer stage. UGH!!! The seller is not too willing to come down on her price and hubby is stubborn and doesnt want to go up too much!! So this all may not even matter if these two cant come to a happy medium.GRRRRRRRRR!!! I am just ready to get over all this stuff and into a home!!

Re: Loan guys or any new home owner, please help settle this dispute

ShanetheMortgageMan — Wed, 29 Oct 2008 18:48:16 GMT

You can just pay it at closing, that is most common. You don't need to come in with a paid receipt unless you want to pay it ahead of time.

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Thu, 30 Oct 2008 01:11:31 GMT

Thanks Shane for all the info it was most helpful!!

We finally settled on a price with the seller so now it is on to all the mortgage stuff..ughhh!!

We haven't tried to find a new mortgage company yet and more then likely won't unless this guy still wants us to payoff a charge off from 2003. How in the heck can you pay off somethng that is a ZERO balance? That is what is shows on the Credit report. Anyway everything else looks good. Do any of you mortgage people know if once it is on the requirements are they willing to remove it if everything else it completed?? Hubby is going to call mortgage guy tomorrow to see what he says. They have us closing on or before Dec1. Hopefully all goes well..Wish us luck!!

Thanks again all for your great advice and information!!

Re: Loan guys or any new home owner, please help settle this dispute

BrianB_The_Loan_Professor — Thu, 30 Oct 2008 01:16:08 GMT

Who is requiring it the broker or the bank? Or is it a bank?

If it is on there from the bank then it will have to be dealt with? Not sure how you pay off a zero balance

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Thu, 30 Oct 2008 01:26:30 GMT

I feel pretty stupid because I am not sure whose requirment it is. The mortgage company is Century 21 mortgage??Does Century 21 Realty have their own financing?? Our Realtor(he is a Century 21 realtor) set us up with this mortgage guy. We are going VA financing. The approval letter came from Century 21 Mortgage and after it says real big CONGRATULATIONS your loan has been approved for X amount it goes on to give a list of items we need to submit prior to closing and this is one of the items. I am sooo confused and soo stressed. I just want this all over and done with!!!!!

Re: Loan guys or any new home owner, please help settle this dispute

MattH — Thu, 30 Oct 2008 02:19:09 GMT

@BrianB_The_Loan_Professor wrote:

Man I can tell you have only been married a year
wont be much longer and you will find out you are never really right just ocassionally lucky with your answer

Ain't that the truth (good thing my wife doesn't read this site)

Re: Loan guys or any new home owner, please help settle this dispute

Anonymous — Thu, 30 Oct 2008 15:21:11 GMT

I was required to prepay for the year. However, our insurance guy is awesome and offered to let us pay a third and he's do a paid in full. We had it included in our closing costs. We also had three months of payments put into escrow.