Closing costs vary based on the property you buy and where it is located. Closing costs will consist of several of the following items: • Attorney’s fees • A fee for running your credit report • A loan origination fee, which lenders charge for processing the loan paperwork for you. • Title search fees, which pay for a background check on the title to make sure there aren’t things such as tax liens or unpaid mortgages listed against the property • Inspection charges required or requested by the lender or you • Discount points, which are fees you pay in exchange for a lower interest rate. • Appraisal fees • Survey fees, which covers the cost of verifying property lines. • Title Insurance, which protects the lender in case the title is not a clean title. • Escrow deposit, which may pay for a couple of months’ worth of property taxes and private mortgage insurance • Inspection fee for pests • Recording fee, which is paid to a city/county in exchange for recording the new land records • Underwriting fee, which covers the cost of evaluating a mortgage loan application]]>
Have a checklist Whether you are a 1st-time buyer or an experienced owner, buying a house requires a “preflight check,” in the words of Barry Zigas, director of housing policy for the Consumer Federation of America. Read on for a checklist provided by Bankrate, including tips on the types of savings you need, plus advice about what matters beyond purchasing a home at its resale value. And if you’re already ready to shop for a mortgage, find the best deal today by talking to your local lenders, mortgage brokers and researching online. Strengthen Your Credit Score “It’s a brave, new world with respect to credit requirements for mortgages,” says John Ulzheimer, credit expert and contributor at CreditSesame. One old rule still applies: The higher your credit score, the lower your monthly payments. “Below 660 or 680, you’re either going to have to pay sizable fees or a higher down payment,” Zigas says. And that’s pretty much the cutoff score for getting a mortgage, he says.