Homestead Funding Discusses What Constitutes Closing Costs

Closing costs are separated into what are called non-recurring closing costs and pre-paid items

. Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. Examples of non-recurring closing costs are appraisals, credit report fees and attorney fees, etc. "Pre-paid items" are items which recur over time; such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

RESPA states that as a home buyer, you have the legal right to request a copy of the HUD-1 Settlement Statement 24 hours before your closing is scheduled. The HUD-1 represents actual closing costs, breaking down which items are to be paid by the buyer and those by the seller. Its a good idea to review both your GFE and the HUD-1 before your closing so you can compare the estimated costs to the actual costs before you finalize your transaction.

Need more information about closing costs? Speak with a Licensed Loan Originator at Homestead Funding today. The mortgage specialists at Homestead Funding can assist borrowers looking for residential financing; FHA loans, VA loans, Conventional and Jumbo mortgages. Whether you are a first time home buyer or refinancing your current home, Homestead Funding can assist you. For a complete list of Homestead Fundings products visit the Mortgage Products page here. Homestead Fundings specialists are located throughout New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. To speak with a mortgage specialist near you, visit homesteadfunding.com/locations/search.cfm.

The client is only required to pay back the loan when the home does not become your primary residence. That could be one of the following; the owners/borrowers sell the house, the owner do not live in the house for a period of 364 consecutive days or they pass away. Payment of property taxes and insurances must be kept current while in the home. Below are the requirements and how much you may borrow with a reverse mortgage.

Homestead Funding Corp. is a multi-state licensed mortgage banker with branches located in New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. In operation since 1995, our corporate headquarters is located in Albany, New York where we have perennially been the area's largest independent mortgage lender. We have tens of thousands of satisfied customers, originated billions of dollars in residential mortgage loans and maintained a reputation of exceptional service, honesty, integrity and financial reliability. For more information, please visit online at homesteadfunding.com

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