Plano Home Loans, Plano MortgageYou’ve found the perfect property and a great mortgage loan with the best interest rate you can find. What’s next in the home buying experience? Signing the contracts, loan documents, and paying the closing costs. But what exactly are closing costs?

Here Is A List Of The Most Common Closing Costs:

  • Title Fees – These include the title search and owners title insurance (also called Owners Title Policy and Lenders Title Policy), associated attorney fees, and settlement fees. The owners title policy is usually paid by the seller but can be negotiated to the buyer.
  • Recording Fees – The county government charges a fee to record the change in ownership (the deed) of the real estate. This can be paid by either the seller or the buyer.
  • Survey Fee – A survey fee can be required by the lender or the title company. It is a fee for the survey of the land or lot, and its structures, to determine that it matches the property description.
  • Appraisal And Inspection Fees – An appraisal is required by the lender to confirm the value of the asset (the subject property of the loan).Plano loan rates  An appraisal is ALWAYS required for a home loan.  Your down payment will be based on the sales price  or the appraised value – whichever is LESS.  An inspection is optional for a buyer and provides an opinion of the physical condition of the property.  An inspector will test plumbing and electrical systems, inspect the structure, heating & air conditioning, to name a few.  The appraiser does a cursory inspection at best, and will note any major deficiencies.  These fees are usually paid by the buyer.
  • Plano MortgagePoints – Points are equal to one percent of the principal of the loan. These discount points are paid by the buyer to the lender to reduce the final interest rate of the loan.
  • Real Estate Brokerage Commission – The seller pays the real estate agent the brokerage commission fee for listing, showing the property, and handling the contract negotiations. The commission is usually a percentage of the sale price of the property, and determined in advance by the seller and the real estate agent.
  • Processing/Underwriting Fees – The buyer pays processing/underwriting fees to the lender for the costs of validating information provided by the buyer and approving the loan.
  • Property Tax – City/County/School property taxes are usually required to be paid for 2 months in advance at the time of closing. The buyer is responsible for these fees.

Resources

What Are Closing Costs

Closing Costs Buyers and Sellers Must Pay

Real Estate Closing Costs – Who Pays and How Much?

How Much Are Home Closing Costs?

HomeClosing101.org – Closing Costs Explained

What are closing costs?

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