Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Home Loan Closing Costs May Be Surprising

Written by: Charles Essmeier

The whole purpose of taking out a mortgage is to borrow the bulk of the purchase price of a house. Most houses sell for prices that are well beyond the amounts the people keep in their bank accounts, so taking out a loan to buy a home is pretty much inevitable. And yet many homebuyers are astonished to discover just how much cash they are required to bring with them when it comes time to close on the loan.

It does seem rather counterintuitive that one would have to bring cash to a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.

If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't forget to bring a cashier's check for $15,000" can be pretty shocking. Here is a short list of things a buyer may be expected to pay, in cash, when closing a loan:

  • The down payment - This is the portion of the price of the house not covered by the loan. In years past, this figure might have been 20% of the purchase price or more. Now, in some cases, there may be no down payment at all.
  • Loan origination fee - The fee that the lender charges to create and process the loan. This fee is typically about 1% of the loan amount.


  • Appraisal fee - The fee charged to assess whether or not the house is worth the seller's asking price. This fee may run $300-500, depending on the market.


  • Property inspection fees - A charge of a few hundred dollars to assess whether the home is structurally sound. This may cover an inspection of plumbing, electrical or sewage systems as well as a foundation or roof inspection.


  • Private mortgage insurance - Charged on loans that cover 80% or more of the purchase price, this insurance protects the lender from default by the buyer.


  • Miscellaneous fees - This covers copying documents, postage, courier fees, notary fees and other miscellaneous office expenses.


  • All of these fees can add up to quite a lot of money. The well-informed buyer would do well to ask, in advance, just how much money he or she will be expected to provide at closing. As the sum can easily amount to 5% of the purchase price or more, most buyers will sufficient notice to gather the funds in order to have them ready on time. The last thing any buyer wants is to be unable to close because he or she cannot provide the proper funds at closing. It is best to be prepared.

    About the author:

    ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans .

    Other Related Articles:

    Interest Only Home Loan – Is It Right For You?
    There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you. Here are some of the situations where an interest only mortgage loan might be beneficial to you: 1. If...read more

    Online Mortgage Brokers - What You Might Not Know About Home Loans & The Internet
    You may think that applying online for a mortgage is the same as applying with a broker in the 'real world', only more convenient. While applying for a mortgage online is much more convenient, and sure to help you get a lower rate because of the...read more

    Why a UK Secured Loan May Be The Right Option For You
    There are so many pressures in the world today. It’s enough to drive someone crazy. One added pressure is the pressure to pay the bills on time every month from a paycheck that is quickly eaten up by other bills and expenses. Before you know it,...read more


    Return to Home

    468x60

    Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
    Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map