When buying a home or refinancing the home you already own, closing costs are a significant consideration in your decision-making. Borrowers can expect to pay between two and five percent of the loan amount, and sellers should expect six to 10 percent. Therefore, you need to know how much money you will need to bring to the closing.

Lenders Fees

Your mortgage lender will assess charges for processing, underwriting, and closing your mortgage loan, including fees to cover the loan application, origination, processing, underwriting, and document preparation. Other charges often incurred include FHA, VA, or USDA fees, discount points, rate lock-in fees, private mortgage insurance, and assumption fees.

 Additional Fees

During the processing of your real estate purchase and closing, there are costs for services from third-party vendors. These charges typically include appraisal fee; tax search fee; flood determination; inspection fees for home, pest, pool, septic, well, and roof among others; survey; owner’s title insurance; credit report; escrow; notary; courier; transfer taxes; recording; closing protection letter; and realty agent commissions. In addition, in some cases, there are attorneys fees and homeowner’s association dues.

 Prepaid Items

An escrow account will be set up to cover prorated costs for daily interest, property taxes, homeowner’s transfer fees, and homeowner’s insurance, including fire and flood coverage.

 Variables

The location, purchase price, and down payment amount can affect your closing costs when purchasing a home. Fees can vary by state, county, and city. The higher the purchase price of your home, the more you will pay in property taxes and title insurance. Transversely, the size of the property will determine the survey and home warranty fees. The bigger the property, the more you will pay. If you put down less than 20 percent of the home’s value, you may need to obtain private mortgage insurance and pay the premium as part of the closing costs. Typically, the lower your credit score, the higher your interest rate. Depending on which type of home loan you secure, you may have additional costs.

Fleet Title will provide you with a closing cost estimate before the closing day. To learn more about the services offered, visit fleettitle.com, call (772) 224-3338, or email them at info@fleettitle.com.