Expert Advice Part 11: Closing Costs

When you reach the closing phase of purchasing a home, you’ll need to be prepared to pay a variety of fees for all the services required to finalize your mortgage and your purchase. Most of these closing costs in Alpine, TX are your responsibility to pay, but there are some that are also the responsibility of the seller.

Here are some examples of some of the most common fees you can expect to come up during a closing:

  • Appraisal: If you don’t pay the appraisal fee earlier in the home buying process, you can expect those fees to be added on during the closing phase.
  • Credit report: The lender will do a credit check to determine whether or not it will approve your loan and for how much money. There is a cost associated with generating this report.
  • Origination: These are the costs associated with making the mortgage loan, including processing the application, underwriting, funding the loan and any other administrative tasks associated with putting the paperwork together.
  • Points: Points are a percentage of your total loan amount. One point on a $150,000 loan is 1.5 percent of the loan, or $1,500. You can either avoid paying or receiving points entirely, pay points at closing to cut down on your interest rate or have points paid to you and use them to cover some of your closing costs.
  • Survey: In some cases, the lender might require you get a survey done on the property. The buyer is typically responsible for paying this fee.
  • Title insurance: Both the owner and the lender get a title insurance policy to protect each party’s investment. The fees associated with title insurance will be accounted for in these closing costs.
  • Title search: There is also a cost associated with searching the public record for the title of the property you are purchasing.
  • Document preparation: A variety of papers, including the mortgage, deed of trust, deed, note and other legal papers, must be prepared before closing, so you may be responsible for covering the costs of their preparation.
  • Recording fees: These are the fees associated with recording the new mortgage and deed.
  • Homeowner’s insurance: Lenders will require you to have a homeowner’s insurance policy in place by the time of closing. You’ll likely be required to bring a fully paid first-year premium to the closing.
  • Mortgage insurance: Depending on how much you put into your down payment, you may be required to pay private mortgage insurance (PMI), which essentially protects the lender, as it will be making a larger investment to cover you.
  • Property taxes: You may be required to bring a certain number of months’ worth of property tax payments to closing.
  • Home warranty: Part of your closing costs may include payment for a home warranty, which guards you against unexpected failures of the appliances or other major systems in your home.

For more information about the various closing costs in Alpine, TX that are associated with closing on a house, contact Carpenter Real Estate today to speak with an expert.