October 24, 2013 – From Owning the Fence
Closing on your home is a huge step in the home buying process. It’s when you officially get the title for your new house. It’s important to keep in mind that there are several costs when closing a home sale.
On closing day, you’ll be expected to pay all of the costs and fees associated with the process. The overall amount shouldn’t come as a surprise to you though, since your lender is required to give you a Good Faith Estimate that contains the estimated amount of the closing costs. These costs include the following:
- Lender fees: These cover the cost of processing your home loan, the points, or percentage of the loan, you owe at closing time, the appraisal of your new home, the cost of running a credit report and interest payments.
- Escrow fees: These refer to the money that’s held in a special account to cover expenses like insurance and property taxes.
- Title fees: These cover the cost of doing a title search to determine if anybody else has a claim to the house and the cost of providing title insurance for coverage in case any title disputes occur.
- Underwriting fees: These are used to cover the cost of the analytical process that’s done when you apply for a home loan.
- Third party fees: These include things like the costs of preparing the documents for your closing.
Need more information on the costs associated with closing a home sale and how a Good Faith Estimate works? Visit our website or stop into our office to speak with any of our talented real estate professionals.
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