900)                  Items Required By Lender To Be Paid in Advance:

901)       Interest from                  to               @ $                      / day:

The lender is allowed to charge you interest from the day you close your loan until the first payment is due.  (Example:  If you close your loan on the 15^th of the month, and your first payment is due on the 1^st of the following month, you will be charged 15 days interest at closing.  That amount is shown on this line.)

902)      Mortgage Insurance Premium for             months to      

On some loans, there is a mortgage insurance premium fee.  When this fee is charged, the amount is shown on this line.  This is generally a buyer’s expense and is shown in the buyer’s column.

903)      Hazard Insurance Premium for             years to          

Hazard Insurance is always required on any mortgage loan.  This is the insurance that protects the borrower and the lending institution against loss in the case of fire or other disasters and damages.  The amount of the hazard insurance is most often a charge to the buyer and is shown on this line in the buyer’s column.

904-905)      Extra blank lines for other insurance premiums or unusual expense items.

1000)             Reserves Deposited With Lender:

1001)      Hazard Insurance           months @ $                             per month:

This line item is generally referred to as:  Being paid into the “escrow account.”  It is also called “pre-paids.”  It is a prorated amount of the annual hazard insurance premium.  This item is charged to the borrower and shown in the appropriate column. style="mso-bidi-font-size: 10.0pt">      1002)      Mortgage Insurance                 months @ $                      per month:

This line item is generally referred to as:  being paid into the “escrow account.”  It is also called “pre-paids.”  It is a prorated amount of the annual mortgage insurance fee.  This item is charged to the borrower and is shown in the appropriate column. style="mso-bidi-font-size: 10.0pt">      1003)      City property taxes        months @ $                      per month:

This is a prorated amount for the payment of annual city real estate taxes.  It is also called a “pre-paid.”  It is charged to the borrower and shown in the appropriate column.

1004)      County Property Taxes        months @ $                      per month:

This is a prorated amount for the payment of annual county real estate taxes.  It is also called a “pre-paid.”  It is charged to the borrower and shown in the appropriate column.

1005)      Annual Assessment             months @ $                       per month:

This is a prorated amount for the payment of any annual assessment fees against this property.  It is also called a “pre-paid.”  It is charged to the borrower and shown in the appropriate column.

1006-1008) Extra blank lines for any additional items unique to the closing of this particular loan.

Table of Contents | Homebuyer Course Start Page | Find A Realtor | Budgeting To Buy a Home | Neighborhoods | Find Your First House | Inspect Before You Buy | Shop For a Mortgage Loan | Mortgage Home Loan Process | Credit Score and Credit Report | Home Mortgage Loan Closing | Being a Home Owner

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