Home closing costs are one of the most overlooked fees when you close on a house. These are fees that are applied to the entire purchase price of the home. This includes appraisal, title, taxes, and hazard insurance. It is important to understand that closing costs do not include the buyer’s earnest money or down payment. These are considered closing expenses when a buyer pays the mortgage note in full.
As you can imagine, the lender wants as much as possible from their loan. This means they are going to charge home closing costs just to get you into the house. Now, the amount you are charged for varies from lender to lender. Lenders have several reasons for collecting these amounts, but the main reason is to protect themselves. You have probably been taught in your mortgage application that the closing costs were non-refundable and this is not true.
What this means for you is that you have the option to shop around for better rates. Remember, that the lender’s closing costs are included in the rate, so you don’t have to worry about them. But remember, they have every right to assess these costs. If you are unable to find a better rate, then you are still in luck because most lenders do not charge an exit fee. The first thing you need to know about home closing costs is exactly what they are and what they cover.
Basically, there are two types of closing costs that you need to know about: The service fee and the real estate agent’s fee. These two fees are often confused with each other but they are not. The service fee is what your broker will be charging you if you decide to close on your home with them. This does not include the actual sale price of your home. It only covers expenses such as legal fees, title, and inspections.
The real estate agent’s fee covers all the fees required to list your home. Real estate closers usually charge this fee along with the mortgage company, title companies, and home buyers. Although, it is not usually required, this fee can help cover costs that you don’t actually incur. This fee is normally a percentage of your closing cost. However, it can cover the costs of the real estate agent who handles the sale.
Another type of fee that is paid for when you close your home is known as a carry-over fee. This means that it is a small portion of what you pay when you close. This is normally determined by the broker or lender that you have selected. Usually, it is less than 10% of your closing cost.
Home closing costs also include a miscellaneous fee. This fee may not be a part of your actual closing cost. For example, if you agree to have a home inspection done before you close, you might have to pay this fee along with other things. Although, it isn’t usually required, this fee is still a good way to save money and ensure that you know all of the costs associated with closing. You can use the information from the miscellaneous fee to calculate the total closing costs that you will have to pay.
The above mentioned are just a few of the common closing costs. There are many other fees that you may encounter or be aware of. By shopping around, you can save quite a bit of money. If you are having problems making your monthly payments, you may want to consider talking to a foreclosure lawyer. They are trained to help you understand the laws and regulations related to closing costs.