One of the final steps to owning your own home is paying for closing costs. Whether you are buying a home for the first time or refinancing an existing mortgage, you will be required to pay for closing costs in order to secure a loan and finalize the purchase. Closing costs consist of the fees associated with your home loan, including fees that are not part of the price of the property. If you are interested in purchasing a home in Mount Pleasant, South Carolina, and want a better understanding of the fees you will be responsible for paying with owning a home, Lucey Mortgage Corporation can help. Read on to learn more about what you can expect to pay for closing costs.
Closing Costs: Basic Information
Closing costs are the additional fees that are required with a home purchase that do not include the down payment and mortgage cost. They are paid at the end of the home sale transaction when the property title is transferred from the seller to the buyer. The amount paid for closing costs will vary depending on several factors, including: the area you live, the type of home you are purchasing, and the type of loan you qualify for. In certain cases, a mortgage broker may be able to negotiate with a seller to lower closing costs or combine the costs into your loan as part of your monthly payment. Closing costs typically are 2% to 5% of the purchase price of the property.
What Fees Do Closing Costs Include?
There are several different fees involved in closing cost totals when buying a home. Some typical closing cost fees include:
- Origination fee – a fee by a lender that accounts for the processing costs related to providing the loan
- Application fee – this covers the cost of processing your loan request and includes other administrative costs such as a credit check, etc.
- Title insurance fee – this protects the borrower from another party claiming property ownership
- Title search fee – this ensures the seller actually owns the home and that there are no lien issues with the property
- Taxes – You will be required to pay taxes on the transfer of the home when the title is transferred, and you will also be required to pay property taxes
- Appraisal fee – You will be required to pay for an appraisal of the home in order to determine its value
Get Assistance with the Home Ownership Costs
Purchasing a home is an exciting endeavor, but it is a major financial obligation that you will want to be prepared for. If you are looking to buy a home in Mount Pleasant, South Carolina, and want a better understanding of the associated costs of homeownership, contact the loan specialists at Lucey Mortgage Corporation today.