Closing Cost Guide

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A COMPLETE GUIDE TO

CLOSING COSTS AUGUST MAIER REALTOR®


COMPLETE GUIDE TO CLOSING COSTS

What are closing costs? Closing costs are a necessary component of obtaining a mortgage. These fees cover necessary expenses like processing your mortgage, obtaining homeowners insurance, and paying property taxes. The seller and buyer will both be responsible for various closing costs.

How much will I pay in closing costs? Closing costs, which typically average 1–5% of the loan amount, vary depending on the loan amount, mortgage type, and area of the country in which you’re buying or refinancing. Lenders are legally obliged to provide you with an estimate of the closing costs associated with your loan within three business days after receiving your application for a mortgage. This key document outlines your estimated closing costs and other loan details.

When do I pay closing costs? You pay closing costs at the end of the loan process — when the transaction closes — not upfront or out-of-pocket. The escrow company calculates all of the closing costs and adds that to your down payment amount, then subtracts any lender credits or seller-paid costs.


COMPLETE GUIDE TO CLOSING COSTS

What are some of the fees that may be included in the closing costs? Origination fee

Underwriting fee

0-1% of loan amount

$300-$900

An origination fee is a fee that a lender charges to account for specific processing expenses related to providing a loan. Origination fees can vary from one lender to another, and they sometimes carry more specific rules than other fees and costs in the mortgage process.

Approval of your loan is contingent upon the underwriter's evaluation of your credit and financial history. The underwriting fee covers the cost of staff time for this analysis. Lock-in fee $100-$300

Discount fee 0-2% or more of loan amount Discount points (or discount fees) are payments made to your lender to lower the interest rate on a loan. The number of points paid is based on the interest rate, with one point equaling 1 percent. This is also known as “buying down the rate.”

Processing fee

You may wait several weeks for the approval of your mortgage application, and mortgage interest rates change every day. Some companies offer to lock in a rate while your application is processed, for a set fee.

Appraisal $350-$600 Appraisers are certified professionals who estimate the value of a home. Your lender uses this value when evaluating your loan qualification.

$300-$900 Loan processors help gather the documentation required to close your loan. Loan officers deal mostly with customers, but loan processors handle the paperwork. Some lenders do not charge a processing fee, so you should keep that in mind when comparing lenders.

Title search and insurance $300-$1,500+ A title company is hired to search for liens against a property and verify that the property is “free and clear.” It also issues insurance in case any issues arise.


COMPLETE GUIDE TO CLOSING COSTS

What are some of the fees that may be included in the closing costs? Property Taxes 0-1% of loan amount Property tax is a tax that an owner of the property —such as a home, vehicle, or vacant land— pays to the local government based on the property's assessed value.

Realtor Service Fee 4%-6% Real estate commission is a fee paid to real estate agents for their services to buyers and property sellers. It is split in half between the listing broker and the buyer’s broker.

HOA Transfer fee $100- $500 This is a one-time fee that occurs when a property is transferred from one owner to another. The HOA transfer fee is mandated by the HOA.

Prepaid Interest $100-$300 Prepaid taxes are taxes you pay before you actually incur them


COMPLETE GUIDE TO CLOSING COSTS

There are various other fees that may be included in your closing costs such as the escrow fee, survey fee, attorney fees, and notary fee. It is important to note that closing cost estimates are only general guidelines and may not reflect the actual amounts you are required to pay. The most reliable way to determine these costs is by speaking to a lender. Please contact a lenders who can help you find an appropriate mortgage for your needs and give you a proper estimate. Below are a few lenders I know, trust, and highly recommend.

Sarah Rynn

Cell: 704-301-6040

Loan Officer

srynne@whitleymortgage.com

Whitney Mortgage

www.whitleymortgage.com https://sarahrynne.zipforhome.com/

George Wise

Cell: 980-254-4938

Senior Loan Officer

george.wise@ccm.com

Cross Country Mortgage

APPLY HERE

Terence Guess

Cell: 215-280-2294

Senior Mortgage Banker

Office: 555.123.4567

Atlantic Bay

terenceguess@atlanticbay.com https://www.atlanticbay.com/te renceguess/? rBOLSrIv6FLo6APy0RuYk


COMPLETE GUIDE TO CLOSING COSTS

Lender List Cont.

Ana Jurca

Cell: 509-638-2237

Mortgage Loan Officer

Office:

On Point Home Loans

anna@ophomeloans.com https://ophomeloans.my1003app.com/ 2106403/register

April Palacios Fairway Home Mortgage

Cell: 704-989-2961 Office: 980-290-4140 aprilp@fairwaymc.com https://apply.fairwaymc.com/#/milest ones? referrerId=aprilp%40fairwaymc.com& loanType=MORTGAGE

Lindsay Goins

Cell: 704-877-8833

Senior Loan Officer

lindsey.goins@movement.com

Movement Mortgage

https://lindseygoins.com/apply/


COMPLETE GUIDE TO CLOSING COSTS

Lender List Cont.

Brian Souders

Cell: 704-965-6870

Senior Mortgage Advisor

Brian.Souders@supremelending.com

Supreme Lending

https://www.supremelending.com/sta rt/? workflowid=125875&lar=briansouders

Preston Cherry Truist

Cell: 404-840-7206 ablake@usa-mortgage.com https://apply.usamortgage.com/homehub/signup/ABL AKE@USA-MORTGAGE.COM

Lindsay Goins

Cell: 704-877-8833

Senior Loan Officer

lindsey.goins@movement.com

Movement Mortgage

https://lindseygoins.com/apply/


COMPLETE GUIDE TO CLOSING COSTS

I'm here to help. Thank you for trusting me to support you alongside your real estate journey. I am honored to represent you and guide you through the buying process. My goal is to ensure that you are comfortable every step of the way. Have questions? I'm always available to help! Shoot me a text or give me a call for the quickest response.

Get in touch CELL

EMAIL

704-231-6024

yourangelofrealestate@gmail.com

OFFICE

WEBSITE

5704-628-SOLD

augustmaier.com

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@AUGUSTM_NCSCREALTOR


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