Find out what closing costs are and why they are necessary in the home buying process. There are a number of costs, which can be included at closing. Knowing what they are and where they come from will help you be more prepared when you come to the closing table.
• Closing costs are the fees needed to process the loan
• Expenses typically included: seller fees, homeowner’s insurance, home warranty and any prepaid items
• These costs are due at the time of closing, in order to complete the home purchase
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Amy: Home buyers are, you know the beginning of the process talking to them about what they are going to need to get them to the closing table. Um and some of those are called closing costs and those are costs associated with their loan fees in order to actually have a lender process that loan for them.
Greg: You know we have staff, an underwriter and a processor, and they are going to be going through to make sure you’re safely able to buy this home without any hiccups.
Eric: Your seller fees are in the closing cost. Home warranties are in the closing costs. Um other various fees possibly.
Amy: There are also, of course, the home owner’s insurance that they have to have in place and that is based upon where they get their homeowners insurance coverage. There are also prepaid items or reserves, as some people refer to them.
Greg: Those are basically the customer’s taxes and insurance that we hold in a savings account, and then when the taxes and insurance are due we can pay those out.
Amy: Taxes are, those are calculated by the county. Those are taken from the county auditor’s office. Calculated on the most current full year of tax information available.
Eric: Our lender um helped us out determining the prices, and payments, and uh they were unique that they didn’t get rolled into the closing cost. We worked with him continually throughout the process. If stuff changed or asking price changed he would quickly compute new numbers and monthly payment and everything for us.