when closing do i have to have the down payment before or at the time of closing? what is the purpose of?

Question

escrow accounts?

Answer 1

when yousign a contract with sellers re agent--+/-1500.
seller takes house off market-sales contract by lawyer. once signed 10% down payment to re agent.
at closing--bank mortgage is signed by buyer and seller signs deed to buyer.
during this time if buyer pulls out. seller keeps money and house is back on market.

Answer 2

When you sign your sales contract there are stipulations as to when you are to bring in the down payment. Some contract spread it out over 3-4 payments while some will allow it to be placed with the closing agent (Escrow) all once, just prior to closing.

So depending on your contract will determine when and at what time your closing cost has to all be with the closing agent.

Do not confuse the down payment with closing cost. closing cost is normally the cost you pay for the loan, points and fees, insurane and taxes as well as escrow and title fees.

An escrow account is when the lender or the buyer decide that the taxes and insurance will be added to the monthly mortgage payment and made as one montly payment to the lender.

The lender in turns set up an account for this mortgage. At the appropriate times of the year the lender then pays the taxes and insurance from the accumulated funds as paid by the borrower.

If you loan amount exceeds 80% of the purchase price then most lenders will insist on an escrow account.

If the lender do not require an escrow account then one is not necessary.

If you decide that you want the lender to hold an escrow account on your behalf then you have to tell them. Also in most instances there is a requirement to pay additional funds so as to start the escrow account, prior to the closing of escrow.

This is normally determined by the amount you will owe on your property county taxes and your hazard insurance policy.

If you are a person that pays his debts on time and you are not required by the lender to have an escrow account I find it better if you took care of these two debts seperately.

The insurance is a yearly debt, that is normally paid on the anniversity of your closing on your home.

The taxes in most states are a semi annual thing normally in Nov and again in Apr. So you will get a statement from the county indicating the amount you have to pay on each of those months in which the county taxes are due.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

yes you have to have your down money payment at closing. The escrow may have your Ernest money deposit? sometimes 1000.00 or so when you signed your contract.

and this escrow money will apply to your down payment money. Ask for your good faith estimate from your lender or real estate agent or title company...this should reflect how much money you need to bring to closing table.

I didn't find out till 3 days before closing I needed $3k No prob but my wachovia lender didn't give me a number till 3 days before closing... pretty slack. I suggest staying all over the agents and the lenders till the deed is done! They are so scattered brained right now~! NO offense any of you good lenders and agents out there...there are just so many who are not up to par.

IMHO

so and the money for down payment usually pays tax stamps, insurance sometimes, all sorts of little fees that's why it's so important to ask for the "good faith estimate" and updates to it until the day of closing.