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Closing costs and how to prepare for them

borrower signing documents

If you are a first time home buyer you may or may not have heard of closing costs. Experienced buyers looking to sell to buy or refinance, already know there are a bunch of fees they are required to pay to close their loan. But it’s not all bad news as there are ways to alleviate the amount of money you will need for closing costs. We’ll show you a list of your likeliest closing costs and what can be done to prepare for them. If you are purchasing a home, know that these costs are separate and apart from the down payment you will need for the loan.

The good news about closing costs?

If you are refinancing, very often closing costs can be rolled into the loan so you pay nothing out of pocket. Or your lender may allow you to skip two mortgage payments depending on the timing of the loan. That, along with your escrow refund from your previous loan may cover most of your costs.

If you are purchasing a home, your realtor should be able to negotiate with the seller to pay some of your closing costs, thereby reducing your cash outlay. Make sure your realtor bears that in mind when they are negotiating on your behalf.

With FHA loans, the upfront mortgage insurance premium can be rolled into the loan, provided the property appraised value will allow for its absorption.

What’s on the list of closing costs?

  • Origination charges
    • Origination fee
    • Points
  • Services you can shop for
    • Title services and lender’s title insurance
    • Home inspection
    • Courier fees
    • Survey
    • Closing and settlement fees
    • Miscellaneous fees
  • Services you cannot shop for
    • Appraisal Fee
    • Credit report fee
    • Flood certification

    We’ll be happy to go over these fees with you in detail so you can get an understanding of why they are charged. Call us now
    at (404) 954 1645 for a free consultation,
    or Text us.

  • Taxes and assorted government-related fees
    • Recording fee
    • Transfer tax or stamp charges
  • Pre-paid items
    • Homeowners’ insurance
    • up-front mortgage insurance premium (FHA loans)
    • pre-paid daily interest
  • Initial escrow payment
    • Property taxes
    • Homeowners’ insurance
  • Other fees
    • Owners’ title insurance

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