It is important for you to be aware of these common closing costs so there are no surprises on closing day.
PROPERTY TAXES. Based on the month you close, property taxes will be pro-rated between you and the seller.
HOMEOWNER’S INSURANCE. You will be required to pay an entire year’s homeowner’s insurance (hazard insurance) premium at closing. PREPAID INTEREST. Depending on the day of the month your loan closes, this charge may vary from a full month’s interest to just a few days’ interest. PRIVATE MORTGAGE INSURANCE (PMI). Depending on the amount of your down payment, you may be required to put a certain amount for PMI into an escrow account. TITLE INSURANCE FEES. These fees cover both the buyer’s title policy and the lender’s title policy. The title company may also charge fees for a title search, settlement/closing fees, recording fees, notary fees, document preparation, and title examination. ADMINISTRATIVE, LOAN PROCESSING, AND UNDERWRITING FEES. These fees offset the cost of processing your loan request, obtaining all the necessary documentation, and evaluating your loan application package.
Other costs that you should be familiar with but do not apply in all cases:
LOAN ORIGINATION FEE. This fee covers the lender’s administrative costs in establishing the new loan. It is generally expressed as a percentage of the loan amount. LOAN DISCOUNT. Often called “points,” a loan discount is a charge used to allow a lower interest rate than the current market rate. One point is equal to 1% of the loan amount.
If you have any questions please give Tom or Darby Associate Brokers at Solutions Real Estate 480-442-5540.
Solutions Real Estate has the Solution to all of your Arizona Real Estate needs. Veteran owned company based in Gilbert, Arizona with several offices throughout the Phoenix Metropolitan area. Currently expanding in southern California in the San Diego market.
I just wanted to reach out to say thank you for everything you helped us with during the process of purchasing our new house at 2203 E. Crest Ln. This isn't our first rodeo together but I'm always impressed with how helpful you are at every step and that you keep us up to date on exactly what is going on and what to expect next, whether it's with the lender, title company, seller agent, etc.I always know what is going on and it's because of you!
At every point in the process, I felt comfortable not only that you were available to answer my questions but confident that you would go to bat for me if I had any concerns about any part of the process.
As always, I will mention your name to anyone who is thinking about buying or selling and would provide my highest recommendation to anyone who is in the market.
Thank you again and next time we're looking to buy or sell, you'll hear from us. Thanks!