Prior to closing
- We will have a final walk through on your home to make sure that you are satisfied with the contents and condition of the home.
- The lender, the title company and I will review your closing numbers to verify that they are correct and match the purchase contract.
What are Closing Costs?
3 types of closing fees...
- Downpayment— This is the amount of cash you are putting into the deal. Purchase price minus the down payment is how much will be financed.
- Prepaids— This is for fees that are Pro-rated and paid in advance. If you sell your home, these fees are pro-rated and returned to you upon selling. For example, homeowners insurance and taxes.
- Fees — just plain expenses, once paid they are spent!
The best way to communicate with your lender and broker is to tell them the "total amount for closing" should not exceed $X. Or you can ask, "What is the total amount I must bring to closing?" Either way should be safe!
Sample Closing Fees for Casper
Credit Report - This is usually around $50.00, and paid at the time of formal loan application. Non-refundable.
Property Appraisal Fee - This is usually around $350 — $450, and it is paid at the time of formal loan application; however, they can sometimes be paid at closing. Non-refundable.
Origination Fee — The lender's charge for loan processing and handling. Customarily 1% of the loan amount, paid by the buyer.
Discount Points - Vary with mortgage market conditions and may range from 0 — 5 or more. Each point is 1% of the loan amount. Points represent the difference between the loan's rate of interest and the discount to this interest that the lender will have to offer to sell the loan to a buyer of loans or a loan investor. Points may be paid by the buyer, seller or both.
Mortgagees Title Insurance — Depends on the purchase price. The lender (who is the mortgagee) requires the borrower to purchase a title insurance policy to protect the mortgagee against title defects that would affect the loan. (NOTE: The seller purchases a title policy for this protection for the buyer.
Document Preparation — "Doc Prep" are usually around $100. This is a charge for completing and handling the paperwork associated with the loan. A lender's fee.
Recording Fees — This price varies depending on title company, but it is no more than $25.00, which is charged by the government for recording in the county records. The documents associated with the purchase (i.e. the deed and note)
Pre-paid Items — These are collections in advance for loan interest, homeowners insurance and property taxes. Daily interest from the date of closing until the end of the month. One year's homeowner's insurance premium for the coming year. Also two to three month's in advance payment for the following year homeowner's insurance premium which is placed in the purchaser's escrow account. Two to three month's worth of property taxes are placed in the purchaser's escrow account over and above the seller's credit to purchasers
Real Estate Closing Firms Fees — This fee is approximately $150.00 to $200.00 depending on which title company is used. (Normally split 50/50 between Buyer and Seller.)