What to Expect During Closing

What to Expect During Closing in Savannah Court, FL

Many home buyers find the closing process to be fairly mysterious. The following information will explain what you can expect in terms of the closing costs that must be made at closing.

Closing Costs in Savannah Court, FL

Closing costs vary by lender and depending on the loan program and loan amount. You can expect your closing costs to be between 2% and 7% of your purchase price. These closing costs can be broken down into prepaid expenses, discount points and out-of-pocket costs.

What to Expect at Closing in Savannah Court, FL

Closing Costs in Savannah Court, FL

Closing costs vary by lender and depending on the loan program and loan amount. You can expect your closing costs to be between 2% and 7% of your purchase price. These closing costs can be broken down into prepaid expenses, discount points and out-of-pocket costs.

Prepaid Closing Costs

Prepaid closing costs include homeowner's insurance, mortgage insurance and the expense of setting up an escrow account, into which you pay monthly. The escrow account balance is used by the lender to pay annual property taxes and insurance premiums on your behalf. The amount necessary to set up the escrow account is a portion of the annual premiums you will be responsible for, and it depends on the property type, property tax rates, the time of closing and more.

Prepaid Closing Costs in Savannah Court, FL

Discount Points in Savannah Court, FL

The second aspect of closing costs are discount points. Each mortgage point is equal to 1% of the loan amount, and each reduces your interest rate by 0.25%. You can choose to pay up to 4 points at closing to lower your interest rate by up to 1.0%.

Out-of-Pocket Costs

Finally, you will also be responsible for third-party closing costs, including attorney fees, a home appraisal, credit report fees, tax service fees, deed recording and more. These fees are for services charged to you by a third party.

Because purchasing a home is a major financial investment, it is important to understand all of the expenses you will be expected to pay to avoid surprises at closing.

New Home in Savannah Court, FL

Call Summit Funding for more information on Closing Costs!