Escrow/Homestead Exemptions? (Happy: homeowners insurance, mortgage, loan)

[VintageGirl]

When you first purchase a home and your monthly mortgage is set based on the current taxes and your homeowners insurance will the payment be adjusted after you file a homestead exemption?
Would you have to notify the service company handling the escrow to let them know?

With the new loan regulations you have to escrow unless you leave 20% down............I miss the days where you could opt out of escrow and handle your own taxes and insurance...........I did it for years and loved it.......but I am not leaving 20% down on a home these days...... so escrow it is

[piyf]

You don't need to do anything. Just file the homestead next year. If this is a new home you better save money because they always get the taxes wrong.

[VintageGirl]

So if I apply for a homestead on a new home before the deadline in April, it won't be applied to the adjustment of my monthly payment until the following year?

[cheryjohns]

You have to have closed by 12/31 of the previous year to qualify for the next year. If you closed in 2011, your first year that you can get the exemption is 2012. Do not send in the exemption form now - since it is too soon, it will most likely get tossed. Wait until after 1/1/12.

Daniel is right, if you are going by what the taxes say now, you may be in for an unpleasant surprise at the end of the year when taxes are due. Base your amount on the tax rate, not what they told you at closing. IF the appraisal district lets it slide for the first year at the reduced value rate, you just started a small savings account. If they correct before the tax bill goes out, you will have the needed amount banked and ready. Remember, it was just a plot of dirt at one time.

[VintageGirl]

Thanks guys, it would definately not be new construction. So I guess in order for it to make a difference in payment I better wait till next years deadline on homestead "if" we decide to purchase a home before April.

[cheryjohns]

If you are purchasing a re-sale - there most likely is already a homestead in place that you could possibly ride until yours kicks in.

[Be Happy 2]

Just to jump in here to ask an additional question for homestead exemption.....How do I apply for it? I bought a home last year so this will be my first year applying. How does that process go?

[RCH99]

Originally Posted by Be Happy 2

Just to jump in here to ask an additional question for homestead exemption.....How do I apply for it? I bought a home last year so this will be my first year applying. How does that process go?

http://www.hcad.org/pdf/forms/11-13.pdf

[cheryjohns]

Forgot to mention - there are companies that will mail you a letter asking for money in order to get it filed. Just go to the site posted above and print the form yourself. It's free - don't pay money to have someone send you this form.

[Maria Jimenez]

The homestead exemption you have to register on January or April, if you did not send in January or April you have to wait until next year.