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Old 08-06-2008, 08:00 PM
 
12 posts, read 36,953 times
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I received a good faith estimate from my lender today. I understand everything on it except for one thing: the property tax (and she was incredibly unhelpful when I asked her to explain it).

When I looked up taxes on the tax collectors website it says they are $900 a year (its new construciton so the previous taxes were just based on the empty lot). Well, the gfe estimates taxes at $2,500---which is about what they'll be with the house completely built. My question is this: do I have to pay taxes for a whole year when we'll be closing in August? Shouldn't it be prorated? Also, I thought for the first year we still only paid taxes on the lot because they get reappraised at the end of the year. Maybe I'm wrong about this. But it just doesn't seem fair that we're paying property taxes for a whole year (and on the entire house, not just the land) when there wasn't a house there for the whole year AND we didn't own it.

Can someone please explain?
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Old 08-06-2008, 09:22 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,095,994 times
Reputation: 1007
You will need to speak to the title company/attorney that will be doing the closing.

They will inform the lender in how much you need to pay at closing in taxes. The lender will add 2-3 months for escrow.

Quote:
Originally Posted by FLHomeBuyer View Post
I received a good faith estimate from my lender today. I understand everything on it except for one thing: the property tax (and she was incredibly unhelpful when I asked her to explain it).

When I looked up taxes on the tax collectors website it says they are $900 a year (its new construciton so the previous taxes were just based on the empty lot). Well, the gfe estimates taxes at $2,500---which is about what they'll be with the house completely built. My question is this: do I have to pay taxes for a whole year when we'll be closing in August? Shouldn't it be prorated? Also, I thought for the first year we still only paid taxes on the lot because they get reappraised at the end of the year. Maybe I'm wrong about this. But it just doesn't seem fair that we're paying property taxes for a whole year (and on the entire house, not just the land) when there wasn't a house there for the whole year AND we didn't own it.

Can someone please explain?
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