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At the closing, the final paperwork is signed and the property title is transferred from the seller to the buyer. The Settlement Statement, or HUD-1 Form, itemizes the services provided and fees charged. It is completed by the closing agent and is given to you at or before closing.
On average, you can expect to pay two to five percent of the home’s selling price for closing costs. Keep in mind that lenders also often require you to obtain homeowners insurance.
Closing Costs Include:
v Attorney or escrow fees (Yours and your lender's if applicable)
v Property taxes (to cover tax period to date)
v Interest (paid from date of closing to 30 days before first monthly payment)
v Loan Origination fee (covers lenders administrative cost)
v Recording fees
v Survey fee
v First premium of Mortgage Insurance (if applicable)
v Title Insurance (yours and lender's)
v Loan discount points
v First payment to escrow account for future real estate taxes and insurance
v Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)
v Any documentation preparation fees
Once the closing is complete, you are free to move into your home as specified by the contract. You will soon realize the economic benefits including the opportunity to build equity and take advantage of valuable tax benefits.
Link to more valuable information:
v Buying Your Home: Settlement Costs and Information
v HUD Mortgage Glossary
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Stop by Hendersonville TN Real Estate and Gallatin Tennessee Real Estate for more information.
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