Closing Costs: The Final Step When Purchasing Your Home

One of the last steps you need to take when buying a home is paying for closing costs, and you will be required to do so whether you are buying a new home or refinancing an existing mortgage. Closing costs are the processing fees you pay a lender and they do not include the price of the property. If you are interested in purchasing a home or refinancing your mortgage in Conyers, Georgia, and want to gain a stronger understanding of the fees that you will be required to pay when you close on a home, Preferred Capital Funding can help. Read on to learn more about what you can expect to pay for closing costs.

Closing Costs – Essential Information

Closing costs consist of the many different fees that are associated with the purchase of a home that do not include the actual mortgage price or down payment and they are paid at the end of the home sale when the title of the property is transferred from the seller to the buyer. They tend to typically cost around 2% to 5% of the purchase price of the property, but the amount that you pay will vary depending on the situation. Some factors that will impact the amount you will pay for closing costs include: the type of home you purchase and its location, and the type of loan that you qualify for. Sometimes, a lender may be able to combine closing costs into your monthly mortgage payment.

Typical Fees Associated With Closing Costs

When you purchase a home, there are many fees that are associated with closing costs. The typical closing cost fees include:

• An application fee – this covers the cost of processing the loan request, as well as other administrative fees such as a credit check.
• Appraisal fee – A borrower will be required to pay for a home appraisal to help determine its overall value.
• Title insurance fee – helps to protect a borrower from another person claiming ownership of the property.
• Title search fee – this helps to ensure that there are no lien issues with the property and that the seller officially owns the home.
• Taxes – Taxes will be required on the transfer of the home when the title is reassigned. Property taxes will also be required.
• Origination fee – a fee charged by the lender to cover the processing costs of providing the loan.

Getting Assistance Understanding Costs Associated With Buying a Home

Buying your own home is an exciting life milestone, however it does come with many expensive financial obligations that you must be prepared for. If you are interested in buying or refinancing a home in Conyers, Georgia, and need help understanding closing costs, contact Preferred Capital Funding today for a consultation.