Sponsor
Home Buyer Help

Valid HTML 4.01!


Down Payment Assistance Programs
I need Down Payment Money.......

Your Closing Costs Matter

Straight Talk:

Your closing costs play a big role in the amount of funds you need to have in order to purchase your home. They vary significantly from state to state and can be the difference between success and failure.

Given this, you should estimate your costs, including your prepaid property taxes and insurance, to be at least 5% of the amount of your new home loan.

So, if your loan is $100,000.00 you can expect your closing costs will be somewhere around $5,000.00. So what do closing costs mean and where do you go to make up the difference?

CLOSING COSTS

You closing cost incorporate all the fees from your Lender, Broker, Banker, third party charges, in addition to your prepaid property taxes and home owner insurance.

Typical Fees break down as follows;

Lender, Broker, Banker:

Loan Origination or Broker Fee
Points
Underwriting
Application Fee

These Fees can be consider either Lender, Broker, Banker costs or Third Party Fees;

Tax Service Fee
Flood Certification Fee
Credit Report
Processing Fee

Title:

Settlement Fee
Title Search
Title Examination
Owner & Lender Title Policy
Wire Fee
Attorney Fee
Various Endorsements

Government:

Recording Fees
City/County Doc Stamps
State Tax
Intangible Tax

Prepaid:

Flood Insurance (where needed)
Home Owner Insurance
Property Taxes
HOA Dues

Misc. Third Party Costs:

Courier Fee
Overnight Fee
Appraisal
Survey
Home Inspection
Pest Inspection
Well Inspection
Septic Inspection
Assessment Certification

There can be many others and some that don't apply, but by now you have the picture that it costs quite a bit to actually get a deed filed with a new mortgage.

COVERING THOSE COSTS

Looking at all the various expenses can be daunting. Thank goodness we didn't include actual numbers.

The reality is, most of your closing costs should be covered by a Down Payment Assistance program, but, there is also a good chance they won't be. Review the assistance program you're applying for. If the program amount you qualify for covers your minimum down payment requirement of 3% for an FHA loan and money remains, you can use these additional funds to pay closing costs. The ence can then be structured so that the seller pays any remaining amount.

If you are using a Charity/not for profit, you will need to structure your purchase so that the seller pays not only your down payment, but your closing costs as well. Don't let this seem daunting, it's done on a regular basis and nothing says you can't do it to!

Home Buyer Education:
Cost Of Funds Index


Copyright Copyright Notice2003 - 2012 U.S. #TX0006199019 - All Rights Reserved
Privacy Policy/Terms of Use

Printer Friendly Page
Advertise
Refer Our Website
Credit Repair Techniques
Mortgage Calculators
Benefits to Mortgage Professionals
Benefits to Builders
Benefits to Realtors
Benefits to Sellers
Articles
Real Estate Terms
Home Buyer Education
First Time Home Buyer Grants
Charity Resources
Benefits To Home Buyers
Down Payment Assistance Home Page
Frequently Asked Questions
About
Find Local Professionals
MLS Search
line bar2
line bar3
line bar4
line bar5
line bar6
line bar7
DOWN PAYMENT SOLUTIONS™
line bar9
line bar10
line bar11
line bar12
line bar13
line bar14
line bar15
line bar16
line bar17
line bar18
MENU


Article:
Mortgage Banking

bookmark this page

Link To Us - Your Link is why we are found in the search engines! Please Support Our Site



Down Payment Solutions
Find Success

Other Important Links for down payment assistance and first time home buyers:

Home Buyer Grants By State:
Alabama - Alaska - Arizona - Arkansas - California - Colorado - Connecticut - Delaware - Florida - Georgia - Hawaii - Idaho - Illinois - Indiana - Iowa - Kansas - Kentucky - Louisiana - Maine - Maryland - Massachusetts - Michigan - Minnesota - Mississippi - Missouri - Montana - Nebraska - Nevada - New Hampshire - New Jersey - New Mexico - New York - North Carolina - North Dakota - Ohio - Oklahoma - Oregon - Pennsylvania - Rhode Island - South Carolina - South Dakota - Tennessee - Texas - Utah - Vermont - Virginia - Washington - DC - West Virginia - Wisconsin - Wyoming