several expenses involved in a mortgage process, from down payments to various
fees. Being prepared for the money you need to have on hand is an important
factor in successfully obtaining a mortgage loan.
Residential Mortgage, Inc. we can help you organize all your costs regardless
of which loan options
you choose. This includes closing costs, which can comprise a variety of fees
and expenses. Here are a few things to keep in mind when planning for closing
Closing Costs Explained
costs refer to a number of different fees required to close the loan on the
home. Most of these fees are paid near the end of the process, but some can be
paid earlier on.
these costs are things like underwriting fees, credit report costs, home
inspection and appraisal dues, attorney payments and loan origination fees. Which
of these costs you’re responsible for will vary according to your unique
situation. For example, some lenders will cover portions of your closing costs
as part of their loan programs, while various states or municipalities may have
slightly different requirements.
Calculating Your Closing
cases, you can expect to pay closing costs that amount to between two and five
percent of the total purchase price of the home. If you want an idea of what
you might pay for a given loan, there are plenty of mortgage
calculators available online to assist you. In the end, though, the
most reliable way to get an exact idea of your closing costs will be to view
the loan estimate sent to you by your lender during the process.
There are a
few different ways that closing costs might be paid during the mortgage process:
into offer: In some cases, closing costs will simply be negotiated into the
purchase offer for the home, dictating that either the buyer or seller pays the
In other situations, you might be able to slightly increase the amount of your
loan to cover closing costs, which folds this amount into the monthly payments
you’ll make toward the mortgage.
cost loan: There are certain loan options out there designed to eliminate
closing costs for people who may not have the funds immediately available to
pay them. Be aware, however, that these loans will come with higher interest
rates that may cause you to pay more over the life of the loan than you would
have by just paying your closing costs up front.
For more information
on closing costs, or to learn about any of our mortgage loan services or
programs, please contact one of PRMI’s qualified representatives today!
If you're ready to take the next step, work with a team that can provide the personal attention you deserve. Our mortgage company has helped over 200,000 borrowers fulfill their dream of home ownership. We'd love to help you too!