Closing Costs
Once you’ve been approved for a mortgage, found a house, made an offer, and the offer has been accepted, you are close to calling your property home. What’s left is to finalize the documents which will transfer ownership of the house from the seller to the buyer. The “close” or “settlement” usually involves a slew of people to complete the deal; the seller, real estate agent, lawyer, escrow agent, mortgage lender, and title company.
How the process works The escrow agent and title company will present you with a variety of documents to examine and sign; title insurance, insurance, escrow, and others – each with their own fees. Expect to pay 3-5% of your mortgage amount toward closing costs. Most fees are negotiable, with lenders picking up some of the costs upfront, while others require some costs to be paid by the borrower upfront, or built into the cost of the loan.
