When you
are financing a home purchase rather than paying cash, you need to be prepared
to pay some initial fees aside from your first monthly mortgage payment.
If you
are purchasing a newly built home, sometimes your builder will cover some of
these costs as an incentive for buyers to purchase a home, finance it with a
preferred lender and go to settlement with a preferred title company. Resale
buyers are also sometimes able to negotiate with the sellers to pay some
closing costs depending on local market conditions and the individual terms of
the sale.
When you
arrange your financing with a lender you should receive an
explanation of anticipated closing costs and a Good Faith Estimate. You may
even see more than one estimate before you go to settlement, where you will see
the final version of the HUD-1 Settlement Statement, a federally mandated form
for all mortgage borrowers regardless of whether you are refinancing or
purchasing a home.
In
general, the fees associated with a home purchase include closing costs, loan
discount points and prepaid items.
For full
article visit: http://www.realtor.com/advice/costs-associated-home-loan/
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