Closing costs are fees charged by the lender and title company at the closing. You can use this online calculators and ask me any questions you may have. I will provide you with your preliminaty purchase expenses.
Terminology:
•Title services. Charges for administrative costs (such as title search) associated with the delivery of title insurance, as well as the services provided by a title or escrow agent.
•Title insurance. A policy that guarantees that an owner has the title to a property and can legally transfer it to someone else. Should a problem arise, the title insurer pays any legal damages. A policy may protect the mortgage lender, the homebuyer or both.
•Inspections (pest, etc.) A fee paid to a certified person who searches the dwelling for termites and other destructive creatures.
•Appraisal. A fee that is passed on to a company that renders an opinion about the real value of the home, independent of its listing or negotiated price. That value is then compared against what the borrower has agreed to pay.
• Survey. A fee charged to hire a licensed surveyor to get an accurate measurement of the property and its boundaries.
•Tax service. A fee to cover the cost of hiring a company to verify the amount of real estate taxes due and making sure they're paid.
•Flood certification. A fee that covers the assessment of whether a property is in a flood zone. If it is, the new homeowner must buy a flood insurance policy.
•Origination, broker, lender or originator. A fee charged to create a home loan. It's often a set percentage of the mortgage amount.
•Discount points. A fee in the form of mortgage interest paid upfront. In exchange for this fee, the lender reduces the interest rate. One point is equal to 1 percent of the loan amount.