How Does It Work?
Are you getting a loan to buy a homestead property in Florida? Or are you refinancing your current homestead property? If so, get a Smart Escrow™ Report and make sure that your title/closing agent and/or lender properly set up your property tax escrow account. The cost is only $25 and it takes less than 2 minutes! Don’t let your lender or title/closing agent use antiquated methods of setting up your escrow account which will result in large escrow account adjustments that you have to fund in cash and that will drastically increase your payments! You can present them with your Smart Escrow™ Report and tell them that you want your escrow account set up accurately!
Why Should I Get One?
Lenders find it very convenient to set up escrow accounts for property taxes the same for all 50 states. Unfortunately, Florida has very unique property tax laws that can result in big adjustments to your escrow account in the first or second year of your loan. Surprises are nice for your birthday, but not when it comes to your mortgage payment and escrow account! The Smart Escrow™ Report is a very easy-to-use tool that creates a simple and completely accurate report on how your escrow account should be set up. See below for an example of how the Smart Escrow™ Report looks.
What If It Isn't Accepted
What if my lender or title agent refuse to use my Smart Escrow™ Report? Hopefully your lender or title/closing agent values accuracy and professionalism. Purposefully setting up an escrow account in a way that will result in big unplanned adjustments doesn’t benefit anyone. Worst case scenario, if they refuse to set up your escrow account properly, you will at least know how it SHOULD have been set up and you’ll have a good idea of what the adjustments will look like the first two years of your loan. This will help you plan for the adjustments so that they aren’t an inconvenient or worse surprise.