What are prepaid items at closing?
Prepaid items are expenses you pay at closing that cover costs coming due shortly after you take ownership, so the lender ensures those obligations are met upfront. Common prepaid items include homeowners insurance for the first year, property taxes to bring the escrow account current or cover the period until the next tax cycle, prepaid interest from your closing date to the end of that month, and sometimes the initial deposit into your escrow or impound account for future tax and insurance payments. The exact prepaid amount varies based on your closing date, loan type, insurance premium, and the property tax calendar. In Arizona, title companies handle escrow and closing. The specifics depend on your situation and a licensed title professional should confirm, and Jon can connect you with one.
Specifics depend on your situation and should be confirmed with a title company. Jon can connect you with one: text (623) 826-0888.
More on closing costs and the closing process
- What are closing costs and how much are they in Arizona?
- How long does closing take after going under contract?
- What happens on closing day and when do I get the keys?
- What is a final walk-through and what if something is wrong?
- Can I close remotely or do I have to sign in person?
- What is the difference between the Loan Estimate and the Closing Disclosure?
Meet Jon Hegreness
Jon Hegreness
REALTOR / Associate Broker · Howe Realty
AZ License BR540940000
Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.