Your Lake of the Ozarks Mortgage Lender: FAQs About Closing Costs

Thursday, August 20, 2020

FAQs About Closing Costs

Buying a home at Lake of the Ozarks is a big undertaking that can feel so rewarding when you finally sign all of the paperwork and get your keys! Of course, there is still one more piece of the puzzle that you will also do on closing day and that is to finalize your costs. If you aren’t sure what is involved in closing costs, we are going to take a look at a few frequently asked questions about closing costs and what they are!

Q: What Do Closing Costs Cover

A: If you’re curious about what closing costs cover, you’ve come to the right place! They are made up of a combination of payments to vendors, government entities, and your lending institution. All of these businesses played a role in helping you get your new home, which is why the closing costs are there. Closing costs are payable with your down payment, but they are separate fees.

Here are some of the most common fees that could be included with the closing costs:

Appraisal Fee
Attorney Fees
Closing Fees
Credit Report Fee
Discount Points
Document Preparation Fee
Escrowed Deposits for Property Taxes and Insurance
FHA Up-Front Mortgage Insurance Premium
Flood Determination Fee
Home Inspection
Home Warranty
Homeowner’s Association (HOA) Fees
Homeowners Insurance Premium for first year
Miscellaneous State and Local Fees
Notary Fee
Owner’s and Lender’s Title Insurance Policy
Origination Fee
Pest Inspection
Prepaid Interest Fee
Private Mortgage Insurance Fee (PMI)
Property Tax
Real Estate Agent Commission
Recording Fees
Settlement Fee
Survey Fee
Title Company Title Search Fee
Title Insurance and Binder
Title Search
Transfer Taxes
Wire Transfer Fee
VA Funding Fee

Q: How Much Are Closing Costs?

A: It’s hard to pin down exactly how much the closing costs are going to be, but they generally range between 2-5 percent of the total sales price.

Q: When are Closing Costs Due?

A: You can anticipate that the closings costs are due on the day of closing, however some purchases and fees may be paid independently of closing.

As you can see, there are a lot of processes that go into the purchase of a home and the costs involved. This is not a comprehensive list, and you will need to talk with your lender to determine an estimate of what your specific closing costs will be.

For more information about what's involved with financing a home at Lake of the Ozarks, give Lakelender Michael Lasson a call at 573-746-7211. I'm committed to working with you every step of the way. I'll discuss your financing options, offer competitive interest rates, and back it up with the first-class service you deserve!

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