Closing Costs

There are certain standard costs associated with closing the sale of a house. These fees are usually split between the buyer and the seller, as spelled out in the sales contract.   There are also some traditional fee payment arrangements in each area.  For Example, the Home Pest Inspection Fee is normally paid by the Buyer, since any Repairs called for by the Inspection are usually the responsibility of the Seller.

"Closing Costs" should not be confused with "Property Tax and Fire Insurance impound" monies that you must pay as a Buyer, to generate an escrow (trust) fund for the Lender to pay your Tax Billings and Fire Insurance Billings twice a year.   This is common practice, and is advised, to avoid missing a payment.  Often the Tax bills are for hundreds if not thousands of dollars, and the billing is sent well in advance of the Due date, making it easy to get the bill lost in your "to do" pile.    Typically, these "Impounds" are about the same magnitude as the Closing Costs.   For example, if the "Closing Costs" were about $6000, the "Escrow Impound" amount would be about $4000, as an order of magnitude.  But remember, Tax impounds are not a "cost" really, they are just a saving of money so that payment can be made when due.

As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to limit the number of closing costs for which you will be responsible.

I will walk you through the closing costs, answering any questions you may have explaining which costs are decreed by law to be yours and which are negotiable.

Good Faith Estimate

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender, and again before a Purchase Offer is committed. The estimate is based on the loan officer's past experience and may not include all the closing costs, but by using actual Fidelity National Title approved fee calculation software, we are able to be consistent, and usually very accurate.   So YOU WILL KNOW by reading it, what costs you will be charged BEFORE YOU SIGN. I will be glad to review the "Good Faith Estimate".    In the Processing of your loan, this will be updated and called a MORTGAGE LOAN DISCLOSURE SETTLEMENT STATEMENT.    At the final approved Underwriting stage of your Loan, the LENDER will issue you a HUD SETTLEMENT sheet for final charges in the transaction.   We make every effort that you will not be surprised.