The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for the following:
* Down Payment
* Loan Origination Fees
* Points - loan discount fees you pay to receive a lower interest rate
* Appraisal Fee
* Credit Report
* Private Mortgage Insurance Premium
* Insurance Escrow for Homeowners Insurance (if being paid as part of the mortgage)
* Property Tax Escrow (if being paid as part of the mortgage)
* Deed Recording Fees
* Title Insurance Policy Premiums
* Inspection Fees - building inspection, termites, etc.
* Notary Fees
* Proration’s for Your Share of Costs (such as utility bills and property taxes)
Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the sixth of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
* The Truth in Lending Statement summarizes the terms of your mortgage loan.
* Affidavits swearing to various statements by either party. Example: sellers often sign an affidavit stating that they have not incurred any liens on the property.
* The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
* Riders are amendments to the sales contract that affect your rights. Example: if you buy a condo, you may have a rider outlining the condo association's rules.
* The deed transfers ownership of the property to you.
* Insurance policies provide a record and proof of your coverage.
Are you ready to buy a home in the Stark or Summit County area? Contact DeHoff Realtors to get started—we are here to help!