How To Better Understand The Final Step In Purchasing A Property

There are many steps you need to take in order to purchase a home, and the final step in the process is paying closing costs, which is required both when buying a new property and when refinancing an existing mortgage. Closing costs ensure that a home loan is secured and the transaction is completed, and include the processing fees required to pay a lender, not the actual price of the home itself. If you are interested in purchasing a property in the areas of Palm Beach, Tri-County, or Broward County, Florida, CTC Mortgage can help. Read on to learn more about understanding closing costs when buying a home.

Basic Information Regarding Closing Costs

Closing costs involve the many different fee types that are associated with buying a home that are separate from the monthly mortgage costs and the down payment. They are paid upon the sale of the home when the title of the property is officially passed from the seller to the owner. Closing costs typically run between two and five percent of the total price of the home, and in some cases a lender may be able to consolidate closing costs into the monthly mortgage payment. Ultimately, the amount paid for closing costs will include the type of home that you plan on purchasing, the home’s location, and the loan type that you qualify for.

Closing Costs And Their Associated Fees

Closing costs consist of several different fees. Some of the most common associated fees include:

• Loan application fee – This covers the cost of processing the loan request, and includes the price of obtaining a borrower’s credit report.
• Title search fee – This helps to guarantee that there are no lien issues with the property and that the seller is the verified homeowner.
• Origination fee – The fee a lender charges for providing the mortgage.
• Appraisal – This fee is required to be paid by the borrower to determine the property’s value.
• Title insurance fee – This protects a borrower from another party claiming ownership of the property.
• Taxes – A homeowner will be required to pay property taxes, and additional tax fees will be required to be paid when property’s title is transferred.

Get Assistance With Home Financing And Closing Costs Today

Purchasing a home is an exciting opportunity, but it is one that comes with many expensive steps. It helps to be prepared and to know what to expect when you begin the process. If you are interested in learning more about your home financing options and paying for closing costs for your dream home in Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage today for a consultation.

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