Occasionally the closing date will be jeopardized just days prior to settlement. Arrange a 60-day locked-in interest rate at application time. Home ownership is the largest single investment you will most likely make during your life. It’s in your best interest to be educated. Pay close attention to every detail and you will win at the real estate game. Your Real Estate Agent’s responsibility is to make sure you succeed by avoiding the top sixteen errors purchasers most commonly fall prey to. After all, your Real Estate Agent’s reputation depends on referrals generated from 100% client satisfaction!
Here’s a list of the costs you can expect when closing your loan:
- Mortgage fees
- Administrative fees
- Application fees
- Appraisal fees
- Survey fees
- Loan origination fees
- PMI (Private Mortgage Insurance)
- Title Insurance
- Credit report cost
- Future interest payments, depending on the loan terms
- Title fees
- Title transfer fees
- Recording fees
- Additional state or local taxes (could include property taxes)
- Homeowner’s insurance
- Flood insurance, if required by law
- Other professional fees
- Attorney fees
- Escrow company fees
- Closing company fees
Key Closing Documents You’ll Receive
HUD-1 Settlement Sheet
This itemizes the services provided and the charges to the buyer and the seller. You should be allowed to review this form shortly before your closing meeting so you know your closing costs in advance.
Truth-in-Lending (TIL) Disclosure
You should be mailed your initial TIL disclosure within three business days of applying for a home loan. It outlines the costs of your loan and discloses the annual percentage rate (APR) and other terms of the loan, including the finance charge, the amount financed, the payment amount and the total payments required. Since it’s possible that the APR calculated at the time of your loan application will change a little before closing, your lender is required to give you the final version of your TIL disclosure at or prior to the closing meeting.
Deed of Trust or Mortgage (also known as the Security Instrument)
These documents convey a lien in your property as security for repayment of your home loan. (This means that if you default on your loan, your lender has the right to foreclose your ownership interest and take possession of the property.)
The mortgage (or promissory) note represents your promise to pay the lender according to the agreed terms. It includes the dates on which your home loan payments must be made and the location to which payments must be sent.