Closing costs are fees that are paid out to all the various people that are involved in your loan process. These include, but are not limited to, your processor, underwriter, and home appraiser.
What is included in my closing costs?
Prepaid Costs: Are not fees, but costs paid in advance when purchasing a home. Examples of just some prepaids are property taxes, homeowners insurance, attorney fees, home inspection, appraisal fees, and mortgage interest that will accumulate between the closing date and month-end. Often these prepaid costs are put into an escrow account and then distributed accordingly.
Cash To Close is the combination of closing costs that are covered by the buyer, all relevant prepaid costs, and your down payment (less your Earnest Money deposit).
You will get an estimate of these expenses before the closing. During the closing you will see the final costs on the Closing Disclosure (CD), so you will fully understand the breakdown of all fees. The First Class Mortgage team will be here to keep you well informed and comfortable throughout the entire loan process.
If you are interested in starting your homeownership journey, please give us a call or apply online today!