Saline Real Estate and Homes for Sale

When you're considering the purchase of a Saline home or condo, it's important to understand the various costs involved with your purchase.  Today we'll seek to understand what it means to pay "pre-paids" on your Saline mortgage.

Pre-paids are funds collected at the closing of your Saline real estate purchase to fund an escrow account in order to cover upcoming expenses such as property taxes, insurance, private mortgage insurance and special assessments.

• Escrow Account
  At your closing, a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account. The amount collected is typically based on the actual month of your closing and the tax bill due date.
• Interest Payment
  In most cases, as the buyer, you are required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins.  For example, if your closing is on May 15, your first monthly payment begins to accrue interest on June 1, with your first mortgage payment due July 1.  At closing, an interest payment covering the accrual period between May 15 and May 31 may be required.
• Property Taxes
  Property taxes are often pro-rated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller will reimburse the buyer for the period in which the buyer occupied the property.

If you're considering a move to the Saline area, you owe it to yourself to understand all of the costs of your mortgage.  I'd be happy to meet with you to explain!  Just give me a call at (734) 476-2063, or send an e-mail, "Vance (at) SalineMichiganRealEstate.com".

You can search for homes in Saline here.

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