( 813 695 4557 ) Blake Plesco Florida Realty
Closing cost are additional expenses you will be required to pay at the closing to purchase your home. They are above and beyond the price of the home and the down payment. They usually range from 2 to 5% of the purchase price.
Loan Origination Fee: This is a fee the bank or mortgage company charges to start the loan.
Discount Points: If you would like a lower interest rate than is being offered you may be able to buy down the rate by paying points. A point is 1% of the loan and usually a rate buy down cost between 1 to 3 points.
Loan Application Fee: Such fees pay for credit checks and may include the appraisal fee.
Initial Interest: Mortgage payments are paid in arrears which means on the 1st of each month you owe the bank for the previous month's interest and principal. When you close interest is charged from the day you close on your home till the last day of that month. Your next full payment will be due the 1st of the following month. Example: You close on the 20th of June. You will be required to pay interest from the 20th of June till the 30th of June. Your next payment will not be due till August 1st .
Private Mortgage Insurance: If you put less than 20% down on your new home you are required to have Private Mortgage Insurance, not to be confused with property insurance. This type of insurance is for the bank to recoup some of the money they lent you in case you default on your loan.
Title Search: A search of the history of a title to make sure the person or persons who is selling you the home is the legal owners of the home.
Title Insurance: Title companies issue two types. One is for the owner of the home for the purchase amount and the other is for the lender of the home and is for the amount financed. Both state you are the owner of the property and the title company will defend your title against anyone who tries to lay claim on your property.
Municipality Search: The title company will search for open permits on the property and also unpaid utility bills which may stay with the property. They usually become the new owners responsibility to pay after the closing.
Property Taxes: If the home will have a mortgage most banks will require the home owner to put a certain amount each month into an escrow account so the bank can pay the taxes when due. Depending on when you close on the home will determine how many months of taxes they will require in advance.
Homeowner's Insurance: This is insurance that will cover damage which may occur to your home. If you are financing your home the bank will require a 1 year premium paid in full and usually an additional 3 months added to your escrow account.
Government Fees: There are various government fees but the most common is doc stamps. This is a percentage of the selling price and a percentage of the amount financed. Usually the seller will pay doc stamps on those required of the selling price.
Purchasing a home may be one of the most complicated transactions you will ever be involved in. That's why most buyers use a buyer's real estate agent to guide them through the process and who uses their experience to make sure it's a smooth and pleasurable transaction for the buyer. The listing agent pays for the buyer agent's fee so the service is free to the buyers.
CLICK HERE for more information on buying your home and to see what homes are selling for in the area or community you're thinking about locating in.
http://www.hillsboroughcountyhomefinder.com/
