Friday, 9 November 2018
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.
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