sanjacintopropertiessmall  What are closing costs?

Closing costs are the costs and fees that are paid by the buyer and the seller when you close on a home. They include such things as taxes, insurance, pre-paid interest, land survey, discount points, real estate commissions, owners title policy, attorney fees, processing fees, transaction fees, etc. These costs are calculated and then put onto a document known as the Closing Disclosure. The Closing Disclosure separates the sellers fees and the buyers fees into two different columns and then tallies them up at the bottom. Usually the seller ends up getting money back at the closing and the buyer ends up bringing a cashiers check to cover his portion of the closing costs.

What is a Closing Disclosure? A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). 

The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This three-day window allows you time to compare your final terms and costs to those estimated in the Loan Estimate that you previously received from the lender. The three days also gives you time to ask your lender any questions before you go to the closing table.


What does the Closing Disclosure Look Like and how do I understand it?  click here

Typical Buyer Closing Costs: Loan origination fee, loan application fee, down payment (usually varies from 0-20%), PMI or MIP, survey, appraisal, termite inspection, home inspection, property taxes, insurance, a portion of the attorney fees, underwriting fees, flood certification, document preparation fees, mortgage broker fee, credit report, insurance and tax impounds, closing or settlement fee, recording fee, notary fee, and sometimes a few others.

Typical Seller Closing Costs: Realtor commission fee, title policy, property taxes through closing, termite treatment (if needed), repairs required by lender, funding fees, existing lien payoff, a portion of attorney fees, closing/settlement fees, document prep fees, notary fees, currier fees, recording fees, transfer fees, transaction fees, and sometimes a few others. Typically the seller can expect between 7%-10% of the sales price as his closing costs, depending on what time of year (taxes), the realtor commission fees and the extent of any repairs or seller contribution to the buyer's closing costs.


BACK TO HOME PAGE       copyright San Jacinto Properties