If you are currently in the process of buying, you have most likely heard about closing costs (if not make sure to sit down with your Realtor and Lender asap!). For most people those are some miscellaneous fees charged by those involved with the transaction. Closing costs are usually between 2-5% of the purchase price, but your lender will give you an actual estimate of closing costs for your purchase.
Who has to pay what is determined by your purchase contract, the loan type and loan amount and any applicable government regulations.
Let’s have a look at some of the most common fees:
Loan Origination Fee: fee charged by the lender for making a loan to you
Appraisal Fee: an appraiser will come out make sure the value matches the size of the loan amount
Credit Report Fee: you pay to get a report of your credit history
Title Services Fees: you have to pay for a title search to see if there are any liens on the property and you have to buy a Title Insurance policy for your lender to protect them from claims
- Property Taxes: the lender will collect taxes from you as part of your monthly payment and then pay the government
Need more details or are unsure about certain fees? Call us at 602-448-3805 and we will connect you with the right person!
By: Patricia Madigan