Types
of Agents
How
to Select an Agent
Prequalified
or Pre-Approved
7
Reasons to buy a home
Moving
with Teenagers
How
to Find a Home
50
"Things To Watch"
when viewing a home
9
Types of Loans You Should Know
What
is a Sales Contract
Finding
Quality Inspectors
10
Ways to Ascertain a Down Payment
How
Lenders Approve Loan Applicants
Definitions
of Closing Costs
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Buyers' Resource Section:
Definitions of Closing Costs
Closing, Settlement, and Escrow are all terms used to describe
the act of closing a home sale. In particular the meeting
between lenders, buyers, sellers, agents, local government
officials, and any personal legal teams involved in the transfer
of a title to a property. Closing costs are imminent to any
home deal. Here is a list of ordinary closing costs.
- Loan Organization Fee: This fee is usually equal to
1% of your mortgage.
- Discount Point(s): Each point is also 1% of your mortgage.
- Assumption Fee: Cost incurred to transferring current
mortgage to your name.
- Cost of Title Search: Mandatory to ensure you are buying
the property from the current owner.
- Lender's Title Insurance Fee:
- Survey Fee(if Applicable): The cost of surveying your
property if not done already.
- Transfer Tax: State and/or Local taxes, stamps etc.
for property transfer of ownership. This fee is sometimes
split among the buyers and sellers.
- Lender's Appraisal Fee:
- Recording Fees: Cost of turning closing documents into
public records.
- Prepaid Mortgage Interest: Interest due between your
first payment and closing.
- Prepaid Mortgage Insurance Premium: First payment
- Homeowners Hazard Insurance Premium: First Payment
- Property Tax Escrows
- Lawyer's or escrow company's fee
Your agent should give you a rough estimate
on the total amount due at closing. However, this is a good
time to bring a little extra with you just in case.
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