Managing Closing Costs

While a down payment and mortgage agreement will cover the purchase price of your home, there are other expenses called “closing costs” that should not be forgotten. Closing costs comprise the second biggest up-front expense charged by lenders to borrowers refinancing or purchasing a home and they can vary widely from lender to lender.

Generally, closing costs make up a number of fees, most of which go for legitimate lender services and costs associated with originating a home loan. Here is a list of the most common closing costs a typical home buyer will encounter:

• Standards legal fees and disbursements.
• All fees for the registration of the mortgage and the title transfer.
• Home inspection fee: A pre-purchase inspection of the home to check for problems by qualified inspectors.
• Legal fees: Services of a lawyer, notary services such as a title search, drafting the title deed, preparing the mortgage and disbursements.
• Prepaid property tax and utility adjustments: Fees and expenses the seller may have prepaid to be reimbursed by buyer such as property taxes and utility payments.
• Home insurance: A buyer must have a paid home insurance policy before closing. Insurance premiums vary by carrier.

The average home buyer knows little about closing costs and often forgets to figure them in when buying a property. There are ways to reduce these costs, ranging from shopping around for professionals such as real estate lawyers and title insurers, to choosing your lender very carefully. Kupina Mortgage Team will thoroughly explain and guide its clients through the home closing process. 1-888-955-9011