Wednesday, 16 January 2019
There are lots of steps along your journey before you get to spend the first night in your dream home: A pre-qualification so you know what you can afford, the hunt, the offer, and the acceptance of the offer.
Payment of the closing costs is one of the final stops—these are settlement charges for anyone who touches the mortgage transaction, such as the loan underwriter, appraiser, and recording clerks.
Costs can vary, but expect to pay about 3 to 5 percent of the total purchase price of the home, says Viola Solomon, BBVA Compass Senior Vice President and Director of Community Lending Mortgage. And like you would do with any major purchase, before you sign on the dotted line, shop around for the best deal. “I would shop those lenders, and I would at least get three loan estimates so you can see what lenders are charging and you can compare," Solomon says.
The costs and kinds of fees may vary from state to state, but in general, closing costs can include:
Just like with any other contract, it's important to have a full understanding of what you're signing. If there's anything on your closing statement you don't understand, ask and keep asking until it's clear.
The content provided is for informational purposes only. Neither BBVA Compass, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA Compass or any of its affiliates.
Links to third party sites are provided for your convenience and do not constitute an endorsement. BBVA Compass does not provide, is not responsible for, and does not guarantee the products, services or overall content available at third party sites. These sites may not have the same privacy, security or accessibility standards.
Having some work done around your house? Here is a field guide to residential contractors and special tips for managing them.
Many homeowners dream of renovating, but worry about the price tag attached. Find easy tips for to help you save money on your renovation.