Category: Closing Costs

YOU HAVE YOUR DOWN PAYMENT BUT HAVE YOU FIGURED IN CLOSING COSTS?

  Are you ready to finance a home loan? Do you have a down payment put aside? How about closing costs, do you know the additional amount needed due at closing?   In some instances, home buyers are not aware of the additional fees needed to close on a home loan. Don’t get blindsided during the closing process. You can check the average mortgage closing costs for your state and see what fees are included.     We offer a variety of products and services, ask us how we can assist you today. Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS...

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MOST LOANS WE ORIGINATE DO NOT INCLUDE POINTS

You may hear people talking about “points” or charging a “point” on a loan; what does this mean? A point typically represents the origination fee charged by the lender to originate the loan; One point is 1% of the loan amount. Example: If you are applying for a $200,000 loan, a point would be $2,000, 2 points, the charge would be $4,000. Most of the loans we originate do not include points because we are paid by the lender. In some instances, however, an origination fee is charged because the product requires it, or it allows us to broker a...

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CLOSING COSTS: WHAT ARE THEY?

Here are the typical closing costs involved in getting a loan and a quick explanation of each cost: Underwriting/Administration Fee the fee charged by the lender to underwrite the loan. Appraisal fee – lenders require a third party valuation of the property by a licensed appraiser. Credit report fee – the fee charged by credit reporting companies.  Escrow fee – the fee charged by the escrow company to handle the paperwork to process the transaction. Title insurance – insures against loss due to liens, encumbrances, or defects in the title to the property. Recording fee – the fee charged by...

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CAN CLOSING COSTS BE PAID FOR YOU?

Contributions toward closing costs allow costs at closing and prepaid expenses to be paid by interested parties to the transaction. So, if you only have the down payment, or are looking to do a no down payment loan and do not have much cash, you can negotiate to have the closing costs paid for you. Closing costs can be paid by the seller, real estate agent, or lender. There are limits on the amount a party can contribute depending on the type of loan and amount of down payment: • If you are applying for a conforming loan for the...

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CAN YOU OBTAIN A LOAN WITHOUT PAYING ANY COSTS?

Many advertisers offer loans with no closing costs: Is this true? Can you obtain a loan without paying any costs? Well, yes you can, but you may be paying for it with a higher interest rate! There are costs associated with making a loan, such as underwriting, appraisal, credit report, escrow, title insurance and recording. All of these people expect to get paid for their service, they are not doing it for free, and they will get paid. If you choose to do a no closing cost loan, you will likely have a higher interest rate. The higher rate translates...

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