Wednesday, June 9, 2010

The Truth About Closing Costs and Fees

Thinking about buying a new home? In addition to your down payment, you will have to pay closing costs and fees associated with your mortgage loan application, title policy, recording charges, government transfer taxes, as well as a deposit for real estate taxes and home owners insurance.

Make sure you compare the closing costs from one lender to another an pay special attention to the following categories:

  • Origination charges
  • Discount points
  • Appraisal fees
  • Title insurance
  • Mortgage insurance premiums
  • Lender credits
Other fees, such as transfer tax, daily interest, escrow deposits, and recording charges are typically the same from one lender to another.

As you can see, most of these closing costs do not go to the mortgage lender. Instead, they go to third parties for services performed in conjunction with your mortgage approval or home purchase.

For a specific estimate of closing costs pertaining to your purchase or refinance mortgage application, please contact our office at (708) 531-8388.

We focus on providing home loans in Chicago, Naperville, Aurora, Elmhurst, Hinsdale, Westmont, Western Springs, LaGrange, Orland Park, Oak Park, Schaumburg, Barrington, Winnetka, Plainfield and everywhere in between.

Get pre-approved today, buy your new home tomorrow!

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