What Are Closing Costs?
The professionals at The Marganon Group have helped you locate that perfect Nocatee new home. The Nocatee home seller has accepted the offer, your mortgage has been approved and now it's time to close.
Closing on a home usually means signing a lot of paperwork and then receiving the keys to your new home. It's important for you, as the home buyer, to understand some of the terminology that might be used in a home closing. A closing also means that you, as a hoome buyer, may be responsible for some of the costs in buying the home. These costs are considered, "Closing Costs". Closing costs usually appear on some type of settlement statement.
Here are a few of the most common closing costs and what they mean:
Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process.
Credit Report Fee: This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan.
Loan Origination Fee: This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage.
Loan Discount: You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.
Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.
PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.
Prepaid Interest Fee: This fee covers the interest payment from the date you purchases the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.
Recording Fees and transfer taxes: This expense is charged by most states for recording the purchase documents and transferring ownership of the property.
When buying a new home, The Marganon Group real estate agents will be there from start to finish to assist you ever step of the way. Contact us to help you find that new dream home today!