Get the Scoop on Closing Costs
Closing costs are fees paid in order to obtain a mortgage loan. These costs are in addition to the down payment on the home, the principal, and the interest related to the mortgage.
Traditionally, the homebuyer is expected to pay all closing costs. However, this can be negotiated with the seller as part of an agreement for your purchasing the home that needs upgrades for them covering some of these costs.
Costs can range from approximately 2-5% of the price of the home you are buying. The fees cover necessities such as:
· Running your credit report
· Loan origination process
· Property inspections
· Property appraisals
· Title insurance
· Escrow deposit
· Pest inspection
· Title recording with the county
· Underwriting process
Closing costs are necessary in order to secure your mortgage loan and pay the professionals for their time and expertise in making homeownership possible. Be sure to talk to your Loan Officer to learn more about the fees and what you will be expected to pay.