I Want to buy a Home, so What Kind of Closing Costs Can I Expect?

Author: marco

Author: marco

This is both a great and hectic time for you and it can be great and hectic for your family too. There is a lot of anticipation that comes with getting to move to a place that is going to be your own. However, before you decide to buy the house, make sure you understand the fees that you will be paying your lender at closing time. If you know and understand the fees you are going to pay, you can save quite a bit of money that can be better spent elsewhere. In addition, there are lenders out there who work as close to the gray are of ethics as possible without crossing the line. What this means is that they are aware that you are worried about many other things and you will tend to ignore or not pay attention to some unexplained charges. Nevertheless, those unexplained charges can add up to several hundred dollars, so you are better off knowing what the charges are, and why you are being charged that amount. You will not be completely lost because, if you make a loan application, the lender is required by Federal law to give you a good faith estimate, GFE, on how much the settlement charges are going to be. No one can give you a set amount of how much you are going to have to pay for costs. The fact of the matter is that closing costs can vary even from county to county within same state. Closing costs can also vary according to the mortgage loan amount, and your mortgage will vary according to how much house you want to get into. Where you choose to live will definitely determine how much you will have to pay in closing costs. Typical closing costs can be but are not limited to: Loan application fees and credit report, loan origination fee, points, title search and insurance fees, lender's attorney, appraisal, homeowners insurance, PMI, inspections, survey, recording fees, transfer taxes, buyer's attorney, escrow deposit for taxes and partial month's interest, among others. On a $100,000 loan, the closing costs can range from $6,000 to $9,000, so it can be quite a bit of cash that you will have to come up with at closing. If you simply do not have that much cash available, then ask the seller to pay some of the closing costs. If the seller says not, you will have neither lost nor gained anything. Something else that you can do is to request your mortgage lender to pay the closing costs if you are very strapped for cash. If the lender pays the closing costs, the interest rate that you will be charged on your mortgage loan will be a bit higher, perhaps as much as .25% to .75% higher than what you had expected. In the end, you will have to figure out whether you can come with an extra $6,000 to $9,000, or if you would rather have the lender charge you the higher interest rate. The point is that it is never too late to negotiate during a real estate transaction, and you should never stop trying to get any advantage you can.About the Author:

If you are on the market for some great real estate, you really need to go to MLS Real Estate in Laveen, Gold Canyon Ranch Golf Real Estate and Fulton Ranch Luxury Properties.

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