*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for certain loan products and/or discuss your options.
Closing costs are an expense paid at the closing of a real estate deal. These costs are added alongside of a borrower's down payment in order to complete the transaction. What is included with closing costs? What does that extra money go towards?
Title insurance, wire fees, escrow fees, inspection fees, credit report fees, mortgage insurance and broker fees are some of the main costs that come along with purchasing a home.
Title insurance is a policy meant to protect home buyers and mortgage lenders from damages or financial losses caused by a bad title due to title defects.
Wires are a way to transfer money, and banks generally charge outgoing wire transfer fees. It's also important to be aware that some banks and accounts may even charge for incoming wire transfers.
Escrow accounts will use the money put into them to pay taxes and insurance for your home.
Home Inspection's help ease a borrower's mind to make sure that there aren't any unknown potentially serious defects which can make their new investment a more costly one.
Credit Reports cost money to pull, and loan officer's will sometimes need to pull a borrower's credit multiple times during the loan process to make sure that their financial situation hasn't changed.
Mortgage Insurance is needed for borrower's who put down less than 20% in their down payment. This is also needed for all borrower's who use an FHA program.
Although these may seem like things that are frustrating to pay for in the moment, each of these things are needed to purchase a home. Thankfully, some fees such as mortgage insurance are only needed based off of certain circumstances. Other fees, such as credit report fees, will be added as a closing cost for every loan transaction.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for certain loan products and/or discuss your options.
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