{"id":4181,"date":"2023-04-12T09:04:39","date_gmt":"2023-04-12T09:04:39","guid":{"rendered":"https:\/\/peaktitlepro.com\/?page_id=4181"},"modified":"2023-04-19T05:41:31","modified_gmt":"2023-04-19T05:41:31","slug":"what-are-the-closing-costs","status":"publish","type":"page","link":"https:\/\/peaktitlepro.com\/what-are-the-closing-costs\/","title":{"rendered":"What are the Closing Costs?"},"content":{"rendered":"\t\t
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Closing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In addition to the purchase price of a property, there are other fees and expenses that are required to be paid in connection with the transaction. As many of these fees and costs are paid at closing, we refer to them collectively as closing costs.\u00a0
Closing costs can vary based on the transaction, financing, and what was required during the closing process. In this discussion, we will walk through a few of the most common closing costs encountered in a typical residential real estate transaction.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Fees Associated With Financing\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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If the buyer is obtaining financing, typically a mortgage, in order to purchase the house, these are typical fees the buyer will likely pay.\u00a0 These fees are generally set and controlled by your lender and should be detailed in your Closing Disclosure.\u00a0 Examples of common lender fees include:\u00a0
Application fee:<\/b>\u00a0this is the fee associated with the application for a mortgage.\u00a0
Appraisal fee:<\/b>\u00a0the lender will order an appraisal of the property to determine the fair market value (FMV) of the property for the purposes of the loan. The fees associated with obtaining the appraisal are passed on to the buyer. The cost of the appraisal will vary by state and county.
Credit report fee:<\/b>\u00a0this is the fee associated with pulling and analyzing the buyer\u2019s credit report.
Origination fee:<\/b>\u00a0this is the fee charged by the lender for processing the buyer\u2019s application.
Prepaid interest:<\/b>\u00a0this is a payment for the amount of interest covering the month of closing. Interest is then paid as part of monthly loan payments.\u00a0
Mortgage insurance payments:<\/b>\u00a0In some cases, typically involving FHA or low down payment loans, the lender may require mortgage insurance. The first payment on this insurance would be paid at closing.\u00a0
Underwriting fee:<\/b>\u00a0this is the fee associated with the loan underwriting process, which involves assessing the borrower\u2019s credit, finances, income, and employment to determine the risk associated with issuing the loan.\u00a0
Escrow deposit:<\/b>\u00a0lenders typically require two months of mortgage insurance payments to be deposited in an escrow account. Lenders may also require a certain number of monthly property tax payments be deposited as well depending on the date the taxes are due.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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