What are closing costs?
Closing costs can be broken down into three categories: • Bank Charges • Title Company & Government Charges • Pre-paids (not considered closing costs) Bank Charges These are charges directly associated with the processing of your mortgage. Following are the basics types of bank charges: appraisal, credit report, underwriting, processing, administrative, document preparation, commitment fee, flood certification, wire transfer, tax service fee and courier fees. Several of these charges, such as processing, commitment fee and courier fee, are “junk fees” and we do not charge them. See Closing Costs for a breakdown of our typical closing costs. Title Company & Government Charges Title charges are associated with insurance guaranteeing that there are no other liens on the property except the new mortgage. Government fees may include city/county/state tax stamps, transfer fees and recording fees. These government fees may vary dramatically from county, city and state. When purchasing a home,
On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you’ll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers. Some closing costs you pay up-front when you apply for a mortgage loan. Those include money for a credit check on all applicants and an appraisal on the property. Keep in mind that even if you don’t eventually receive the loan, that money is not refundable. Other closing costs are possible and should be considered when evaluating your financial situation. These may include, but not limited to: – Title insurance fee – Survey charge – Loan origination fee – Attorney fees or escrow fees – Document preparation fee – Garbage or trash collection fees; and the big one – Points: Up-front interest paid in return for a lower interest rate. Each point is one percent of the loan amount. Sometimes you can contract for t
When buying your new home or refinancing your existing home, in addition to your down payment, the prepaid property tax and homeowners insurance premium, you’ll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and seller. Listed below are typical closing costs associated with mortgage loans. Some of the fees may or may not be required.
