CLOSING COST
Why are PREPAIDS included in Closing Costs in Atlanta GA?
What is the purpose of a Closing (or Settlement, as it is called in other parts of the country)? You could say that the Closing is to even out the usage of the home between the Seller and the Buyer as well as balancing out the financials with the principals and the Lenders.
PREPAIDS are part of Closing Costs in Atlanta GA because the Buyer must pay the upcoming expenses for the Lender in order to get the loan. What are some examples of PREPAIDS?
Hazard Insurance* and Property Taxes are two examples of categories where the Lender prefers to hold the money. The PREPAIDS are often called RESERVES as well.
That's why PREPAIDS are part of Closing Costs in Atlanta GA.
Have a happy day -
Lynn
* Often called Homeowner's Insurance ...
Comments(0)