Post # 1
So I am currently in the process of buying a first home with my Fiance. We made an offer almost a week ago but the seller still hasn’t gotten back with us. (that’s another story for another time, I’ll leave it at, we think she may be a little nuts lol)
Anyway besides all that, my mom who lives hours away, but does mortgages, and of course, has bought a house before.
Told us that generally the first payment is due at closing (which we knew) but that then you don’t have another payment due for 90 days??
I mentioned this to our real estate agent, who now thinks I am crazy.
Where is my mom getting this? Has anyone experienced this?
It would be awesome and all, but…idk if it’s true…
Post # 3
In times when it was difficult to get people to buy houses, lenders have been known to offer all sorts of deals.
That is not standard however.
Post # 4
When I bought my condo I paid the first payment at closing (July 3rd) which was considered my August payment, and then my next payment was due Sept 1st.
ETA: If my closing had been on June 29th the payment made at closing would have been considered my July payment and my next payment would’ve been due August 1st.
Post # 5
This is done for new builds so the payments are technically the downpayment given in portions but I have never heard of the mortgage being done like that.
Post # 6
I’m so perplexed as to where my mom who does this for a living came up with this and then so many people have no idea what I am talking about.
Post # 7
This was my experience. Most USDA and other 100% motrgages are like this. When you close, you pay the first month (or two in some circumstances) and the next payment is not due until 2 or so months later. This gives the mortgage company time to process and sell your loan if they do not plan on maintaining the loan.
EX: I bought my house in March 2010, I went to closing and paid all of the closing costs and then my next payment was not due until June 1st.
I also just refinanced and had the same scenario, I refinanced in March 2012 and I paid April as part of the closing and now my next payment is due May 1…
Post # 8
When we bought our house, our first and second payment were included in the closing costs. So we closed, and then our first payment wasn’t due for 60 days. We closed at the end of September, and our first payment wasn’t due until 12/1.
Like @Mrs.LloydDobler: said, it gives the mortgage company time to process and sell your loan. Our loan was sold shortly after that to Wells Fargo, so that’s where our first official payment went after closing.
Post # 9
It all depends on when you close. I have never heard of 90 days but have known of 60 days quite often.
Post # 10
well I am glad to know my mom is not loosing it and I am not completely crazy for asking my realtor about it!
Post # 11
I think I didn’t pay for like 2 months, but I figured it’s because they were entering me into their system and I’d already paid my first month?
Post # 12
We closed on our house on March 30th. The only thing we paid at closing was our down payment and closing costs (well, actually those were wired in the day before).
Our first mortgage payment was due today (May 1st). So this was just over a month later. Our mortgage had already been sold to Wells Fargo in that timeframe.
@Ms. Martian: Our home was a new build and we didn’t have what the OP is describing.
Post # 13
Our first payment was due in 60 days, but if you can get 90 days thats awesome. That’s a couple thousand back in your pocket.
Post # 14
Similar thing with us. We closed on August 3rd and didn’t have to make a payment until October.
Post # 15
I closed on July 28th and paid my first payment, then my next payment was due September 1st, but I’ve definitely heard of 60 or 90 day periods between the first and second payment.
Post # 16
This is what I understand to be typical from what my parents and friends have told me:
I haven’t experienced it yet myself, but we’re closing on our house in a couple of weeks and I know that the interest for the days in May that we’ll have the keys is included in our closing costs, as this article describes.