Why do I have to pay a whole year in taxes if I buy the house in August?
My husband and I are looking for our first home. I’m being told by lenders that if I close on August 1, at closing I will still have to pay into an escrow account the taxes from Jan through August 1. But since the seller is the one who will actually pay those taxes since they lived there during that time, the seller will give me a credit for those months. I don’t understand this part. I asked if this meant they will take the amt off of the house or give me that money, he said no it’s just on paper. How does this work out. Thanks in Advance for your help.
I’m in TX if this helps.