Addison Baldwin Group

First United Mortgage Group

  • Home
  • Blog
  • Company Page
  • Contact

Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to Pay

October 8, 2014 by Michael Addison

Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to PayIf you’re in the process of buying a new home, you’ve likely heard the term “closing costs” in regards to the many different fees and taxes that you’ll be required to pay during the purchase process.

In this post we’ll look at a number of these closing costs and what you will be expected to pay when you buy that next dream home.

Taking out a Mortgage? There Will Be Fees Attached

If you’re taking out a mortgage to finance the cost of buying your home you’ll end up incurring a variety of fees. Nearly all lenders will charge a mortgage application fee, which covers the cost of processing your application and all of the necessary paperwork.

You’ll likely have to pay for a professional appraisal of the home as well, as the lender will want to ensure that they aren’t lending you more than the house and property are actually worth.

Inspection And Insurance Costs Will Add Up

If you’re buying a pre-owned home you’ll need to pay for a home inspection to gain an understanding of the home’s condition and if you’ll need to make any repairs in the near future. You’ll also need to purchase homeowner’s insurance on the property to protect yourself in the event that something does go wrong with the home.

If you put less than 20 percent down on the cost of the home, your mortgage lender may also require that you purchase private mortgage insurance; this will vary depending on which state or province you are buying in.

Don’t Forget About Escrow Fees and Taxes

As with any major financial transaction you’ll need to satisfy the tax man by paying various taxes on your purchase. These will vary depending on where you are buying your home, but might include sales taxes, property taxes, transfer taxes, recording fees, title transfer fees and more.

If you used a third-party escrow service to manage these fees or to hold your deposit during the closing process you’ll also need to pay escrow fees prior to signing the final paperwork.

Filed Under: Home Buyer Tips Tagged With: Buying a Home, Closing Costs, Home Buying

headshot

Michael Addison & Jessica Baldwin

Mortgage Sales Managers
Jessica Baldwin NMLS# 857625 Michael A Addison NMLS# 6032145
Call Us Today!
Michael – 214-500-1358
Jessica – 979-777-6855

Addison Baldwin

Connect with Us

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Browse Articles by Category

Looking for something?

Equal Housing Lender
NMLS Consumer Access

Member FDIC | Equal Housing Lender | NMLS# 400025

Our Location


1845 Woodall Rogers Fwy, Ste. 1000
Dallas, TX 75201

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in