Closing costs - in short - are fees associated with purchasing a home. It includes fees accrued by the lender as well as third parties involved like appraiser and credits bureaus that are owed upon closing on your mortgage loan. How much are they? Is there a way to get around them? Here are a few things to know about closing costs when buying a home.
The costs fluctuate
Depending on where you live, the lender you are working with and even the year you choose to buy your home can determine your closing costs. Not only that, but closing costs are considered a negotiation tool when working with a seller.
How many closing cost fees are there?
The amount of fees can vary depending on the type of loan you’re getting and even the type of property you’re getting. Things like pulling a credit report, the appraisal of the home and even flood certification and title insurance can warrant a fee. You may also see something from the lender called an origination fee or a processing fee - you may be able to get around this fee, but you will risk a high interest rate.
How to combat high closing costs
The more research and shopping around for your mortgage can ensure you are informed in what you are getting on all fronts - including closing costs. Some lenders are willing to work with your credit and your family’s circumstances to help you get a loan that will work well within your financial means - if you are in an impeccable financial situation, you may find lenders even competing against each other to give you the best loan possible.
Working with Mortgage Advisor will help you make sure you are getting the perfect loan for your housing needs!