Closing Costs 101

 Closing costs for a mortgage refer to the fees and expenses you need to pay when you finalize the purchase of a home and secure a mortgage loan. These costs are typically paid at the "closing" or settlement of the real estate transaction. Closing costs can vary widely depending on factors such as the location of the property, the type of mortgage you are getting, and the value of the property, but they generally include the following:

1. Loan origination fee: This is a fee charged by the lender for processing your mortgage application.

2. Appraisal fee: The cost for an appraisal, which is required to assess the value of the property.

3. Credit report fee: The fee for pulling your credit report to assess your creditworthiness.

4. Title search and title insurance: The fee for searching the property's records to ensure there are no disputes over the ownership of the property, and for purchasing title insurance to protect against any issues with the title.

5. Survey fee: The cost of verifying property boundaries and ensuring the property's description matches official records.

6. Recording fees: Charges for recording the sale and mortgage with the local authorities.

7. Escrow deposits: Often, lenders require you to prepay property taxes and homeowners insurance into an escrow account.

8. Attorney fees: In some states, you may need to hire an attorney to oversee the closing process.

9. Homeowners association fees: If applicable, these fees may be prorated between the buyer and the seller.

10. Other fees: There may be additional costs for specific circumstances, such as if you're buying a condo or if there are special assessments on the property.

It's essential to carefully review your Loan Estimate and Closing Disclosure provided by your lender, which outlines the closing costs associated with your mortgage. These costs can add up to several thousand dollars, so it's crucial to budget for them when planning your home purchase.

Park Place Financial Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacefg.com

info@parkplacefg.com