You’ve found the perfect home in Pittsburgh. What is the next step to reach your real estate goal of home ownership? Finding the right mortgage with the best terms and closing costs for you. But what exactly are closing costs?
Here is a list of the most common closing costs:
Title Fees – These include the title search and title insurance, and the associated attorney fees.
Recording Fees – The government charges a fee to record the change of ownership of real estate.
Mortgage Application Fees – These fees are usually an upfront fee if your lender would require it.
Appraisal Fee – Appraisals are required by the lender to ensure that the value of the property is equal to that of the loan. The appraisal will also make sure there are not any underlying problems that detract from the property value.
Discount Points – Your lender may charge a percentage of the principal loan amount to reduce the final interest rate of the loan.
Underwriting Fees – The buyer pays underwriting fees to the lender to pay for the costs of determining if the buyer qualifies for the mortgage loan.
Property Tax – Taxes are paid to the local municipality, county and school district. The amount is based on the predetermined market value of the property. The buyer may need to establish an escrow account that collects 1/12 of the annual payment monthly so that the lender can pay the taxes when they are due. The property taxes are prorated and a buyer will see this breakdown at closing.
Home Owner’s Insurance – The buyer is responsible for purchasing a one-year home owner’s policy at the time of the home purchase. The lender may establish […]