5 Factors to Help You Estimate Closing Costs

Closing costs can vary greatly from one person to another, so having an estimate of closing costs to help you  budget is necessary. You should be aware of the percentage that your realtor is keeping, and whether the seller or the buyer will be paying this fee. However, there are several other factors to consider when estimating closing costs.

1. Interest

You will pay be required to pay mortgage interest when you buy a house in the middle of the month. The interest from the day you purchase the home until the last day of the month. The amount is required to be paid at closing.

3. Taxes

Your real estate property taxes will be paid at closing on a prorated basis. Also, your lender will ask for a certain amount of homeowners insurance, mortgage insurance and taxes to be paid at closing in order to fund your escrow. Ask your lender ahead of time how many months they will collect at closing.

4. Title

The title company should be able to tell you ahead of time how much they are charging for title services. These fees should be set and should not change much during the process.

5. Loan fees

The lender will charge you various fees for the loan. Application fees, credit check charges and origination fees are all commonly charged. These too will be paid at closing and should be on your good faith estimate.

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