Are you thinking about buying a home? One of the details in the home buying process is qualifying for a home loan. There are certain costs involved with obtaining a mortgage called closing costs. What are closing costs? 

We have spelled it out below for you.....



















  • Origination Fee - Payment to lender to evaluate your credit, underwrite and process loan.
  • Discount Points - Paid to a lender at closing to reduce interest rate over the life of the mortgage.
  • PMI or Mortgage Insurance - Required if your down payment is less than 20%. Protects the lender if you default on your loan.
  • Appraisal Fee - Paid to appraiser to confirm the home's fair market value.
  • Title Search - Covers the costs to confirm the seller own's the property and it is free from liens.
  • Title Insurance - Protects the lender and you (if you request policy coverage) if a title claim surfaces in the future.
  • Termite Inspection Fee - Inspection is required to certify the home is free of termite damage or infestation.
  • Survey Fee - Charge to verify property boundaries.
  • Flood Certification Fee - Covers the cost to determine if home is in federally designated flood zone. If it is, the lender will require you to purchase flood insurance. Some lenders also charge a separate flood monitoring fee to check for flood map updates.
  • Prepaid Interest - Covers any mortgage interest due between the date of closing and your first mortgage payment.
  • Prorated Property Taxes - Covers property taxes from the date of closing to the end of the year.
  • Homeowner's Insurance - Typically, you will pay the full first year policy cost upfront at closing.
  • Homeowner's Association Transfer Fee - Paid on properties located in a community with a homeowners association to transfer ownership documents to you, as the new owner.
  • Initial Escrow - Lender may require the first two months of next year's homeowner's insurance, flood insurance and property taxes to build up a reserve balance in your escrow account.
  • Closing or Settlement Fee - Paid to the title company, attorney or escrow company that conducts the closing.
  • Recording Fee - Paid to the state or county to record the transfer of property from one owner to another in public records.
  • Transfer Tax - Also known as Documentary Stamps, paid to the state or county based on the amount of the mortgage. This fee is charged when a property changes ownership.

We hope this helps explain and answer your question....What Are Closing Costs?

Our Realtors can help you purchase a home. Call or text us today! Lisa Castanet 863-838-1318, Deane Hart 863-860-4257, Joe Baker 863-409-2293, Ed Phelps 863-640-2320, Andy Hernandez 863-838-6736 or Valerie Castanet 863-640-6103