Find Your Dream Home

Congratulations on finding your dream home! With the seller's acceptance of your offer and your loan approval secured, you're now on the brink of closing the deal and getting the keys to your new home.

The closing, also known as settlement, is the pivotal step where ownership of the property officially transfers from the seller to you, the buyer. However, navigating this final stage can be overwhelming for many.

As the buyer, you'll encounter a flurry of paperwork and be required to provide a substantial check covering the down payment and various closing costs. It's these closing fees that often remain a mystery to buyers, who may end up paying thousands without fully understanding what they're for.

To empower yourself as a responsible buyer, it's crucial to be aware of these mortgage-related and government-imposed costs. While fees can vary by location, here are some common ones to anticipate:

  Covers the cost of assessing the property's value, often paid upfront during the loan application. 

 Includes the expense of obtaining your credit report, typically paid during loan application.

 Represents the lender's processing costs, typically around one percent of the total mortgage. 

  If you choose to pay points to lower your interest rate, this one-time charge is applied. 

Encompasses expenses for title search, examination, insurance, and document preparation. 

 If your down payment is low, this fee protects the lender against foreclosure until you have 20% equity.

Covers interest from home purchase to first mortgage payment.

Holds funds for future property taxes and insurance, with advance collections at closing. 

 State charges for recording purchase documents and transferring ownership.

 Consulting a local real estate professional is invaluable to understand specific fees in your area and negotiate costs with the seller. In some cases, sellers may even agree to cover all settlement expenses. Knowledge is power—empower yourself for a smooth and informed closing process!