Property Taxes, Transfer Taxes , Recording Fees & Closing Costs
Lender's Good Faith Estimate
When you make your formal loan application, they will prepare paperwork known as the Good Faith Estimate. This is a form that has the lender's fees, loan amount, taxes, insurance, and everything that will be included in your loan. The Good Faith Estimate will give you a good idea of what to expect to see at closing on the Settlement Statement.
As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to limit the number of closing costs for which you will be responsible.
I will walk you through the closing costs, answering any questions you may have explaining which costs are decreed by law to be yours and which are negotiable.
There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.
Settlement Statement
At closing you will receive a settlement statement which is similar to what was on you r Good Faith Estimate. The estimate is based on the loan officer's past experience and may not include all the closing costs. This is why it is called an estimate. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low. Then when we arrive at closing I will make sure that everything is as it’s suppose to be.
Standard Closing Costs
Taxes
Ø Transfer Taxes and Recording Fees-cost associated with transferring title, and recording
Ø Property Taxes- Property taxes paid from the date of closing until the end of the year
Loan Cost
Ø Points (optional)-$ that can be used to by your interest rate down.
Ø Appraisal Fee- Fee for appraisal that can be required as a closing cost.
Ø Loan Origination Fee- Lender usually charge 1% of the loan amount
Ø Interest Payment-Interest paid from the date of closing until the end of the month of closing.
Ø Credit Report-Fee for running credit, can be also be paid at loan application or as a closing cost.
Ø Escrow Account-account set up to hold taxes and insurance to be paid out when due.
Insurance
Ø Homeowners Insurance-Insurance to cover cost of replacement of the home of a fire, or destruction.
Ø Flood or Quake Insurance-Another type of insurance for homes in 100 year flood plan, or in regions where earthquakes occur.
Ø Private Mortgage Insurance (PMI)-insurance required when the buyer has put less than 20% down.