Home-buyer, You do the right thing, contact a lender, find the best realtor for you and start the home search. All of the sudden these key words are being thrown around while you stand there wondering "is this a dumb question, what are my closing costs???"
CLOSING COSTS-
The fees required to complete your real estate transaction paid at closing. Your lender will be able to get you a complete list of closing cost items, which include points, taxes, title insurance and more. Buyer closing costs are usually between 2% to 6% of the home’s purchase price.
Example of closing cost are:
- Appraisal fee
- Application fee
- Credit report and credit supplement fees
- Mortgage origination fee
- Lender’s policy title insurance (plus optional owner’s policy title insurance)
- Closing attorney fee (in some states)
- Courier fee
- Bank processing fee
- Recording fee
- Notary fee
- Loan discount points
- Homeowners association transfer fees
- Homeowners insurance
- Property taxes and tax servicing fees (including a prepaid lump sum)
- Mortgage insurance for down payments worth less than 20% of the purchase price (MIP/PMI)
- Flood certification fee (in some areas)
You can negotiate as part of your offer the seller paying a portion of your closing costs, depending on the market at that time.
There I go throwing around more key words, never fear I will be explaining these terms next....
Be well, have a wonderful day!
