What Are Closing Costs?

Assuming you have found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home. But before you get the key, there's one more step—the closing.

Also called the settlement, the closing is the process of passing ownership of property from seller to buyer. And it can be bewildering. As a buyer, you will sign what seems like endless piles of documents and will have to present a check for the down payment and various closing costs. However, we will show you this cost in advance, so you will know what your are doing

Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process. The appraisal fee is usually between 0 - $250.

Credit Report Fee: This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan. This cost runs from $15.00 to $60.00

Loan Origination Fee: This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage. We generally are able negotiate away to keep our buyers from paying this.

Loan Discount: You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan. Again, our buyers seldom pay this.

Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.  This various according to the cost of the house.

PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance. We can often work out away where there is no PMI.

Prepaid Interest Fee: This fee covers the interest from the date you close  the home to the date of your first mortgage payment, anywhere for 30 to 60 days.

Escrow Accounts: A mortgage lender will usually start an account that holds funds for  property taxes and home owner's insurance.

Recording Fees and transfer taxes: This is  a charged for recording the deed and mortgage, generally around $50.00 

Call or email us and we will furnish you with an estimate of your closing cost, free and without obligation.