What Are Closing Costs?
After you find your dream home, get an offer accepted, and your loan approved, there is one more step called the closing. This is when the seller transfers ownership of the property to the buyer. During closing, the buyer will sign many documents and pay for the down payment and various closing costs.
Some common closing fees include:
- Appraisal Fee: pays for the appraisal of the property
- Credit Report Fee: covers the cost of the credit report
- Loan Origination Fee: covers the lender's loan-processing costs
- Loan Discount: a one-time charge if you pay points to lower your interest rate
- Title Insurance Fees: covers title search, examination, insurance, and document preparation
- PMI Premium: a fee for mortgage insurance if you have a low down payment
- Prepaid Interest Fee: covers the interest payment from the date of purchase to the first mortgage payment
- Escrow Accounts: holds funds for property taxes and home insurance
- Recording Fees and Transfer Taxes: charged by most states for recording purchase documents and transferring ownership.
If you have questions or are ready to begin the home buying process, just complete the form below, and a member of our team will be in touch shortly!
Are you a first-time homebuyer? Did you know that if you haven’t owned a property in the last three years that you are considered a first-time homebuyer?View Resources
Before the offer to purchase is created, you must be at least pre-qualified or, better yet, pre-approved by a lender, unless you are paying cash.View Resources
Once your offer is accepted by the seller it starts the offer accepted period. You will be asked for a down payment, typically 1% of the purchase price, on the home you are purchasing which will be held with an attorney or settlement company and applied to the final purchase of your property.View Resources
Complete the form below and we'll create you a custom property search. Anytime when we find properties that match your specific criteria we’ll send you an email.View Resources
Are you thinking about buying? The video resources below cover many of the common questions that most people have during the home buying journey.View Resources
You've found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home.View Resources