Plano Home LoansWhether you’re just starting to shop for a new home or you’ve already found the perfect new house and you’re ready to submit an offer, if you’re taking out a home loan to cover some of the home’s purchase price you should be aware of the various closing costs you may encounter.

What Closing Costs Do Buyers Typically Pay?

As you move forward in the home purchase process you’ll incur a variety of fees that cover document preparation, inspections and other services that are required to fully process your mortgage. Your application and processing fees cover the cost of preparing your loan application and submitting it to your lender. Your credit report fee covers the cost of pulling a credit report which is used to assess your suitability for a mortgage and whether your loan is worth the risk.Plano Home Loans Warren Whitaker

You’ll likely pay an appraisal fee as you’ll need a proper appraisal of the home’s value, and you may need to pay a flood certification or survey fee depending on where the home is physically located. Additional fees that you may incur include wire transfer fees, underwriting and processing fees, courier fees and settlement fees.

Finally you’ll also encounter a number of closing costs that aren’t directly related to your mortgage, including insurance costs, attorney fees, property taxes, government filing or recording fees and more.

plano home loansConsider Negotiating with the Seller

It may be worth asking the seller to pay some – or all – of your closing costs, depending on the offer that you’ve submitted and how strong of a negotiating position you’re working from. Trust in your real estate agent’s advice in this regard as you’ll want to avoid spooking the seller by asking them to cover costs that they didn’t anticipate.

As you can see, there are a number of different closing costs that you may encounter when you purchase a new home. An experienced mortgage professional will help you to better understand these costs and can show you areas where you may be able to find some additional savings. When you’re ready to buy your next home, contact Warren Whitaker, Senior Mortgage Loan Officer with Highlands Residential Mortgage at 972.523.8353 and he will be happy to share some advice.

Resources

What Are Closing Costs and How Much

Settlement Costs Booklet

FHA Closing Cost Limits

A Consumer’s Guide to Mortgage Refinancings

Closing costs

 

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