What is Included in Closing Costs?
With your house-hunting efforts finally behind you and your preferred lender found, you can start making your way down the final stretch to home-ownership – settlement day, also referred to as the ”Closing.” At least 3 business days prior to your closing, the title company (or your lender) will have sent you a copy of your closing documents. Read through them carefully, as they will include details on the closing costs that are due the day of closing.
Closing costs will cover both recurring and nonrecurring fees that are a part of your transaction. Recurring costs are ongoing expenses that you will continue to pay as a homeowner, with a portion of them due upon closing. Nonrecurring fees are one-time costs associated with borrowing money and the services required to purchase the property. Recurring costs are placed in your escrow account, which serves as a savings account for those upcoming costs. Common recurring costs include:
- Property taxes
- Homeowners insurance
- Prepaid loan interest
- Mortgage insurance (if applicable)
Nonrecurring costs may include:
- Home inspection fees
- Discount points paid up front to lower your interest rate
- Origination/Processing fees
- Document preparation fees
- Appraisal fees
- Survey fees for verifying the home’s property lines
- Underwriting or administrative fees for the cost of evaluating and verifying your loan application
- Credit report fees
- Title Insurance, search, and recording fees
- State taxes – In Florida, these are called Documentary Stamps (Note and Deed) and the Intangible Tax
Let Us Help
We understand that financing a home can be a daunting task, but the experts here at Butler Mortgage are here to help. Our Loan Officers will do everything possible to make your mortgage experience as painless as possible, so you can spend less time worrying, and more time enjoying your home. Call us today at 407-931-3800 with any questions.