The final step of purchasing your home is the closing, where you sign the documents and get the keys to your new home. There are a number of costs that you’ll pay at closing, so you’ll need to be prepared to factor that into your budget.
Your Mortgage Expert will review your mortgage details and help you understand your closing costs. You also need to bring a certified check that day to cover all closing costs.
Three business days before closing you will receive a Closing Disclosure. This document itemizes all of the funds and costs paid by the buyer and seller either at or before closing. This document will show the loan amount, interest rate, loan term, origination fees, title insurance, deposits for property insurance and taxes, homeowners insurance and any other fees. Review the Closing Disclosure carefully and compare it to the Loan Estimate you received to make sure there are no surprises.
You’ll receive a Final Closing Disclosure during your closing. This is the final version of the document you received 3 business days before closing. Check for any last minute changes.
The most common closing fees are:
• Appraisal fee—For the estimate of your home’s market value
• Settlement fees—For any legal representation to prepare and record documents
• Inspection fee—For examining for structural problems; also for termites, lead paint in older homes and your roof
• Origination fee—For processing and administering your loan
• Title fees—For the search to verify there are no tax liens on the property and for insurance to protect you if a problem is discovered
There are also fees you may have to pay for applying for your loan, running your credit report, recording your purchase with the local government and surveying your property.
In some cases, your seller may pay some of your closing costs, especially if they’re motivated to sell quickly, but this comes with limitations.
Your Mortgage Expert can answer any questions or help you understand your Closing Disclosure, so you can plan ahead for your closing costs.
Results of the mortgage affordability estimate/prequalification are guidelines; the estimate isn't an application for credit and results don't guarantee loan approval or denial.
All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.