| Check out the section on closing
costs for descriptions of the fees and tips about
how to save money. Usually, closing costs equal
from 3 percent to 6 percent of the sale price.
Reminder: Keep your copy of the "good faith
estimate" and compare it to the final list
of closing costs. Question any changes or additions.
Your closing agent should allow you to review
the settlement form one business day before closing.
You may want to preview a sample of the HUD-1
Settlement Statement at the web site of the Department
of Housing and Urban Development. The site also
has other helpful information about closings and
settlement.
At this point, having secured the mortgage loan,
you already have paid for the loan application
fee, the property appraisal and some of the down
payment. At the closing, you will need to pay
the balance of your down payment. There are other
costs that still must be paid in order to close
the sale, unless you already have arranged and
paid for them. (If so, bring receipts and other
documentation with you to the closing.) These
costs can include:
• Title search and insurance
• Survey
• Termite or other inspections
• Homeowner's hazard insurance
• Flood insurance
• Taxes
• Attorney and closing agent fees
Additional fees related to the loan:
• Loan origination fee
• Points, if any
• Private mortgage insurance (PMI)
• Balance of your down payment
Reminder: Have separate certified checks for
all closing costs. Some of the costs, such as
points, are tax deductible. Also, bring your checkbook,
so you can write a personal check for small miscellaneous
expenses such as photocopying.
The next section will review the escrow accounts
and payments that must be made at closing.
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