Common Closing Costs

Your lender should give you a Good Faith Estimate when you prequalify to help give you an idea of the closing costs that will be associated with the purchase of a home you’re considering, if the lender does not give it to you, ask for it.  Below are some of the closing costs you may see, some of these costs you may need to pay prior to closing as well.

• Loan Origination Points or Fees
• Title Insurance (Owner & Lender)
• Hazard Insurance Premium
• Reserves with Lender
  • Property Taxes & Hazard Insurance (a couple months to start your escrow account)
• Prorations
  • Home Owner’s Association, Rent, Property Taxes
• Interest
• Private Mortgage Insurance (PMI - if Loan to Value Ratio is above 80%)
• Attorney Fees
• Recording Fees
• County Tax Stamps
• State Tax Stamps

May be paid prior to closing

• Inspections – Termite, House, etc.
• Appraisal
• Survey
• Credit Report Fee

Closing Day

Closing day is here!  At the settlement table the title company representative or attorney will go over all the paperwork with you.  The seller may be at closing with you or they may sign before or after you do.  You will bring a certified or cashier’s check to closing for the balance of the down payment and closing costs due.  Once all parties have signed and documents are returned to the title company, the keys will be transferred and you are the owner of a new home!

Walk-Thru Inspection

Often, either earlier on closing day or the days just prior to closing you will go through the home with your Realtor to make sure that any corrections that were supposed to be made by the seller according to the contract were completed.

Preparing to Move

While you are preparing for closing, you will also be making the plans to move. Besides packing boxes and moving all of your physical possessions to a new home, here is a list of some more things to remember:

• Transfer the Utilities- you will want to contact the utility providers prior to closing and let them know what day to switch them into your name
• Contact the Schools - if you have children in school, you will need to know where they will be going after you move and ask the school about the bus schedule and stops
• Change your Address with the Post Office - don't forget to start forwarding your mail to your new home
• Change your Address on your Driver's License - you may need to change your address on other forms of ID or accounts as well, licenses, credit cards, etc.