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Home Closing FAQ
A home closing is the final part of buying a home and also one of the most stressful. Before you go through your closing, you will need to have the home you plan to buy inspected by a licensed Professional Engineer. This is so important and in the end, could save you thousands of dollars. You will also need to choose an attorney or settlement service, contact all of the utility companies to make sure utilities are in your name, and if necessary, purchase mortgage and hazard insurance. Remember that if you have any problems, your lender or broker will walk you through the process.

Depending on your lender and where the property is located, loan fees will vary. When you first send in your loan application, be expected to pay between $700 and $1,500 down as earnest money, which is then deducted off the amount of the house or applied to your down payment. In most cases, the seller will pay for some of these fees if that is in the purchase agreement. Typically, your lender will allow the seller to pay from 3% to 6% of the sales price, which will go toward your closing costs.

To secure a mortgage loan, you will need to proof that the seller has a clear deed, meaning they are the legal owners of the property and have full right to sell. This is called a title search. Other fees included in the closing are administrative fees, application fee, appraisal fee, origination fee, credit check, any courier fees, flood check fee, documentation preparation fee, processing fee, underwriting fee, tax service fee, and possible wire transfer fee. If that is not enough, you also have escrow fees, title insurance, recording fees, interest, mortgage insurance, and property taxes. To give you an idea of what some of these costs on average, consider the following that you will need at time of closing:
  • Administrative Fee - $50 to $100
  • Application Fee - $50 to $100
  • Appraisal Fee - $300 to $1,000
  • Credit Check - $50 to $75
  • Underwriting Fee - $150 to $675
  • Tax Service Fee - $10 to $50
  • Escrow Fees - $200 to $500
  • Recording Fees - $20 to $125
During the actual closing, you will meet with the lending institution and often, your real estate will come. During this time, be prepared to sign a lot of paperwork to include deed documents, and documents between you and the seller. At this time, you will hand over a check for the closing costs. Once the closing is complete, your first mortgage payment will not be due until 30 to 45 days later.

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