Thread: Closing costs?

Originally Posted by ACER9103

Hi everyone- ACER9103 here with more questions on house buying.

How much does an Appraisal cost and how long does it take to complete? Any referrals?

A couple of days to complete but it might take a week before the appraiser can get to it. The cost usually runs between $350-$450.

Originally Posted by ACER9103

how are the closing costs figured?
What is included in the closing costs?

Closing cost have three different forms. The first being orgination fees or points to pay down your loan. These fees are based on a percentage of your loan amount. One point usually buys down the interest rate .25% and costs 1% of the loan amount. The orgination fee would pay your L.O.'s wages and the points are used to make up for the interest loss on the loan by dropping the interest rate.

Next are just different fees for drawing up documents or processing paperwork. These fees are paid to the county for recording documents, to the document creation companies for producing the contracts and deed paperwork, and a processors/underwritters fees pay the people that review the information for the bank to make sure everything has been done properly.

Finally we discuss the fees charged by the attorney for closing the loan and setting up escrow accounts if you are in an attorney state if you are in an escrow state the fees are less but paid for a escrow company to handle. Also, included in this set is the cost for title insurance which covers you, the seller, and the bank if some long time back leins show up on the property or that many years back the rights to minerals on your property where sold but it was never recorded.

Originally Posted by ACER9103

When will my first mortgage payment be due once we close?

Your first mortgage payment will not usually be due for more than 30 days. So if you closed on the 15th of January you would not have a payment due until the first of March.

James is absolutely correct, but you really to find a Realtor and a loan officer whom you trust to explain these things to you.

Thank you Mike Taylor & Jamesww...That is very good information and I am appreciative. I was always wondering what those fees consist of.

Thanks again!

Have your Realtor ask the title company for a preliminary HUD1. This will not be exact but it will give you a really good idea of your closing costs. Appraisals in Florida run at about 275 to 325.