Understanding Closing Costs

You may have spent months or even years saving up a down payment for your home purchase, but did you know that you will have some additional costs associated with the closing on your house? These are called closing costs, and they consist of a variety of fees that are split between the buyer and the seller.

You can negotiate many of the costs associated with closing, and even ask for assistance with some or all of your closing costs. As we prepare the purchase contract on your behalf, we will not only discuss the purchase price that you want offer, but also the number and amount of closing costs which you are required to pay.

Good Faith Estimate

A Good Faith Estimate is a breakdown of closing costs given to buyers when a loan application is submitted to the lender. The loan officer will provide this estimate based on his or her past experience, thus it may or may not include all of the closing costs associated with your particular purchase. We are happy to review the Good Faith Estimate to give you a second opinion based on our professional experience and expertise.

Standard Closing Costs

Loan-Related Costs:

  • Loan origination fee
  • Points (if applicable)
  • Appraisal fee
  • Credit report
  • Interest payment
  • Escrow fee

 

Tax-Related Costs:

  • Prorated property taxes
  • Transfer taxes
  • Recording fees

 

Insurance-Related Costs:

  • Homeowners insurance
  • Flood insurance (if required)
  • Earthquake insurance
  • Private mortgage insurance (“PMI”)
  • Title insurance

The most important advice when it comes to closing costs? If you have questions, ask! Your team is here to go through with you and explain all of the various elements of the estimate in order to ensure that you have a handle on the financial aspects of the closing process.

In addition, you’ll need logistical information like wiring instructions or assistance in the event that you are unable to attend your closing in person. Talk to us about any of these issues so that we can help you create a plan to ensure that your closing goes off without a hitch.

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