If you thinking about buying a home? Here's a tip I'm sharing with people who are buying a home. I hope you find it useful.
On closing day, you officially become the owner of your home. It's important to understand and prepare for the costs associated with closing. Here are some kinds of the fees involved in a standard closing.
Inspections - you may have already paid these costs. If not, they are collected at closing.
Title Insurance - pays to research who legally owns the property and protects you and the lender against loss or damage if someone should challenge your ownership.
Loan Origination Fee - This is the fee paid to the company originating your loan to cover their costs associated with creating, processing, and closing your mortgage.
Homeowners Insurance - Your lender will require proof that you have adequate homeowners insurance. You may be required to pay the first year's premium.
PMI - Private Mortgage Insurance is required by your lender if you put less than a 20 percent down payment on your home.
Property taxes - These are based upon the purchase price of your home
In a typical home purchase, closing costs equal about 2 to 5 percent of the purchase price of the home. You don't want to be caught short at this important time. If you'd like more information, just call or send me an email.
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