One of the areas of most confusion for borrowers is that of closing costs. I find that borrowers don't know what they are for, how they are determined, if they can vary from lender to lender, and if there is any help available to pay for them. In this article I will break down the different types of fees that could appear in your "Closing Costs".
by Christian Scully
So you’ve got your credit score where it needs to be, you’ve saved your downpayment funds, you’ve been pre-approved for a mortgage loan, you’ve found your dream house and you are about to put an offer in… but wait! Closing costs! Do you have enough extra funds to cover them or will you need to roll them into your loan? Wait, you can do that?
Closing costs are exactly what they sound like: the costs associated with actually closing your loan and finalizing the transfer of property from the seller to you. They primarily consist of three things: loan origination charges, the settlement services that are needed to finalize your purchase or refinance and finally any pre-paid and/or escrowed funds.
Let’s look at both of these in a bit more detail:
There may be origination fees charged by your lender.
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Thoughts, ideas, lessons-learned, inspiration, how-tos and more from a journey to own and invest in real estate, and helping borrowers navigate the mortgage process as a licensed loan originator.
Christian Scully is a licensed mortgage loan originator (NMLS 1864693) in Rhode Island, Massachusetts, Maine and Connecticut and is available to help borrowers seeking to purchase or refinance a home.
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Disclaimer: The creators of Better Life and Finance are not certified financial advisors and are not attempting to give general financial advice. The information is from personal experience and shared freely. Consult a professional financial advisor when making financial decisions. Christian Scully is a licensed mortgage loan originator and is qualified to answer your home loan questions.