Picture This: You have found a Realtor you can trust, obtained financial pre-approval with financing now in place, established a perfect location, the right house, your offer was accepted by the seller, inspections & appraisal now done and everything has fallen into place. NOW it is time for closing on your new home! Many home buyers want to know what exactly do those closing costs include!?
Your lender will help make your closing as straightforward and seamless as possible and will guide you through the process. You will receive a Good Faith Estimate (GFE) from your lender where it is outlined for you a list of the approximate closing costs included with your transaction so you will know what to expect. These costs may be added to the amount of your mortgage loan or there is a possibility that the seller may at times cover the closing costs you would usually pay.
These costs include:
- Lender Fees- costs of credit reports/interest payments, processing your loan, the percentage of the loan you owe when it comes time to close, as well as the appraisal of the home.
- Escrow Fees-Escrow is money that is held in a third-party account on behalf of the transacting parties to cover expenses such as insurance and property taxes.
- Title Fees-The cost of the title search and title insurance incase any title disputes occur.
- Underwriting Fees-the cost of the actual process that is done when you apply for a home loan.
- Third Party Fees-a document preparation fee which essentially is the cost of preparing documents needed for closing,
