So I applied for a VA loan.  I just got the Good Faith Estimate (GFE) in the mail.  The entry entitled "initial deposit into your scrow account" is over $4500!!  I understand that this is a deposit based on taxes and insurance, but $4500!?!?  By my calculations, my annual insurance and taxes calculates is going to be around $4000.  


Is this going to change by much?  This is by far the biggest line item in the GFE for the closing costs.  Help is much appreciated. 




Hi dirtboy,

I talked with an expert here at USAA and here is what he had to say about your situation:


The most likely cause for the large amount shown is when the taxes are due. For example, if you’re in a county that has a tax collection due date of December and you’re closing in November or December we might need up to 14 months worth of escrow payments. In this scenario you wouldn’t be making payments into your escrow account until January or February. So we would need the tax bill of 12 months plus additional to ensure you have enough to pay next year’s bill. Here’s the good news, the seller will have to reimburse you for the period of the year they occupied the property which will, for the most part, offset the amount needed for the new escrow account.



I hope this helps! Your processor can confirm and we’ve sent them a note to give you a call. Please let me know if you have any additional questions!