What are these fees that a buyer must pay in purchasing a home? Find the best list of mortgage closing costs for the buyer below. Understanding these fees takes the surprise out of buying a home.
Every first time home buyer hears the term closing costs. But you may be wondering of those closing costs, how much is the buyer responsible to pay? In other words, what are the buyers closing costs? That is a very good question. Usually the home buyer is responsible for those costs related to the mortgage.
Since your lender requires homeowner's insurance at closing, you will want to shop for the best price with the most benefits.
Keep in mind, these are just the basic costs that usually are the buyers responsibility. Every locality have other necessary fees that could be added to this list. This just gives you a basic idea of those fees the buyer should expect to pay.
As you look at this list, it makes sense that it would be the buyers responsibility to pay these particular costs. These fees can range from 2% to 5% depending on the loan program you go with.
These are just the typical home loan closing costs that are for the buyer. When you apply for the loan the lender is required to give you a Good Faith Estimate.
This is an estimate of the buyers closing costs. Be sure you review this document closely. Then a couple of days before closing you will receive a final settlement statement usually called the Hud-1 Settlement Statement. Compare the two documents to be sure there is no surprises.
Recently I reviewed the Good Faith Estimate for one of my relatives. Everything looked good and I told her it was a great deal but to let me see the final settlement statement to see if anything had changed. Guess what? The loan origination had gone up substantially from the original estimate!
I advised her to go back and discuss why that fee had gone up so much. That is why you must pay attention to these two documents to make sure they do not quote you one price and then turn around and charge you another.
Do not let these buyers closing costs frighten you. They are necessary for you to close on your mortgage. Just watch for those unnecessary closing costs!
Buying a house, even if the economy is not great, is still one of your best investments. You just do not want to spend more on the buyers closing costs than are necessary. So take the time to review the documents given to you and soon you will be moving in.
If you feel you are ready, go ahead a see if you are eligible.
Do you have more questions? Have A Question is a cool place to search for answers or ask your own question and have an expert answer it.
You have your questions answered and now want to find a real estate agent in your area who works well with first time home buyers? Best Real Estate Agents Directory allows you to locate an awesome agent in your area.
Want to read others stories of their first home purchase? Individual Home Buying Experience lists the stories of others so you can avoid their mistakes. If you have already bought a home, why don't you tell your story. Go ahead...rant and rave to benefit others.
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Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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