It is current a buyers market prices in homes for sale have dipped a bit. Due to this i have come across alot of new home loans. For the most part people require 100 percent financing. With this the customer can be qualified for two mortgages 80 % first and 20 % second in order to avoid paying PMI ( i will explain this in a later blog). Sometimes loans can be done at 100 percent with just one loan but special criteria need to met and usually the rate is a little higher. Its really up to what the customer can afford. When they buy and sell property , there are certain expenses that are charged to each party. This is where the principle of proration comes into effect. It is escrows job to credit and debit the buyer and seller CORRECTLY as of the closing date of escrow. Proration is best described as the process of making a fair distribution of expenses, through escrow at the close of a sale. In financing a customers understanding of this process can make or break your deal. Some clients take it the wrong way but if explained properly you can avoid these misunderstandings.