What Makes Up Closing Cost?
In addition to a down payment, you will also have to pay a closing cost when purchasing a home. The closing cost is made up of miscellaneous fees that finalize the real estate transaction. This article will cover the things that make up closing costs.
What Makes Up Closing Cost?
Application Fees: This fee is paid when you apply for the loan. It is not refunded.
Appraisal Fees: This fee covers the inspection of the home to determine the value of the property, which helps the mortgage lender determine how much mortgage will be approved.
Credit Report Fees: This fee is paid to obtain your credit score and credit history.
Title Search Fee: This fee is paid to obtain a search of any historical records of a property to make sure the seller is the legal owner and no liens exists.
Survey Fees: This fee is paid to establish the boundaries of the boundaries.
Escrow Account: This fee is paid so the mortgage lender can set up an account for things like homeowners insurance and property taxes that will be due after closing.
Recording And Transfer Charges: This fee is paid to cover the cost or recording and transferring the home purchase with the proper government agencies.
Lender's And Buyer's Attorney: This fee is paid to cover the attorneys who will prepare and review all of the documents that are needed to close the loan.
Interim Interest: This is the interest from the times of closing until the end of the month.