Home Buying: What are Standard Closing Costs?
When buying a home, it's important to factor in all costs into your budget to ensure there are no surprises come closing day. However, many new home buyers often get blindsided by the fact that they'll likely need to come to the closing table with funds in hand to cover such fees. So, to help new buyers prepare for all possible costs related to buying a home, we're providing information on what standard closing costs there typically are so you're better prepared for your closing.
What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Many of the closing costs result from getting your mortgage. Since Mortgage Headquarters of Missouri, Inc is highly experienced with closings and mortgages, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We answer buyers' questions about closing costs every day at Mortgage Headquarters of Missouri, Inc, so please be sure to ask if we can help answer your questions.
Below is a fairly generic list of closing costs. Your lender should provide a more specific list of your closing costs when you receive the Loan Estimate.
Standard Closing Costs
Loan-Related Costs
Various Taxes
Loan-related costs
Points — A fee paid to lower your interest rate (optional)
Appraisal Costs
Credit Report
Up-front Interest Payment
Escrow Account
Property Taxes
Transfer Taxes and Recording Fees
Insurance
Homeowners Insurance
Private Mortgage Insurance (PMI)
Title Insurance
Flood or Earthquake Insurance if applicable
Trust Your Lender to Guide You
By knowing the typical closing costs to expect upfront, you'll be less likely to be surprised at the closing table. Keep in mind that special circumstances may require additional costs, but your lender should provide you with a list of any other costs to expect. If you have questions pertaining to mortgage lending and closing costs, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have the answers you need to be prepared. We've been in the mortgage industry for more than 20 years and can help guide you through the mortgage lending and closing process!
What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Many of the closing costs result from getting your mortgage. Since Mortgage Headquarters of Missouri, Inc is highly experienced with closings and mortgages, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We answer buyers' questions about closing costs every day at Mortgage Headquarters of Missouri, Inc, so please be sure to ask if we can help answer your questions.
Below is a fairly generic list of closing costs. Your lender should provide a more specific list of your closing costs when you receive the Loan Estimate.
Standard Closing Costs
Loan-Related Costs
Various Taxes
Loan-related costs
Points — A fee paid to lower your interest rate (optional)Appraisal Costs
Credit Report
Up-front Interest Payment
Escrow Account
Property Taxes
Transfer Taxes and Recording Fees
Insurance
Homeowners Insurance
Private Mortgage Insurance (PMI)
Title Insurance
Flood or Earthquake Insurance if applicable
Trust Your Lender to Guide You
By knowing the typical closing costs to expect upfront, you'll be less likely to be surprised at the closing table. Keep in mind that special circumstances may require additional costs, but your lender should provide you with a list of any other costs to expect. If you have questions pertaining to mortgage lending and closing costs, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have the answers you need to be prepared. We've been in the mortgage industry for more than 20 years and can help guide you through the mortgage lending and closing process!
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Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
Be sure to subscribe to our blog, as we'll be discussing in detail the services that we offer, sharing with you a wealth of helpful mortgage lending information, the differences between different lending options, and much more that'll help to provide you with the knowledge you need to know about mortgage lending options! Be sure to like us on Facebook, Twitter, LinkedIn, and Google+ to stay up to date on all the latest and greatest news we'll be sharing with you!
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
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