What are prepaid items?

Prepaid items are amounts collected at closing to fund your escrow and cover costs in advance — typically property taxes, homeowners insurance premiums, and interest from closing to month-end. They're part of closing costs but aren't lender fees.

They're not extra charges, just bills paid early to set up escrow. We itemize prepaids on your Loan Estimate so you know what's a fee versus a prepaid.

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