Welcome to HomeFree-USA Financial FAQ Knowledge Base. Type in your question or search keywords that correspond to your issue.
For example: Why do FICO scores decrease?
That depends on a number of factors, including the cost of the house and the type of mortgage you get.
There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following:
|Attorney's or escrow fees (Yours and your lender's if applicable)|
|Property taxes (to cover tax period to date)|
|Interest (paid from date of closing to 30 days before first monthly payment)|
|Loan Origination fee (covers lenders administrative cost)|
|First premium of mortgage Insurance (if applicable)|
|Title Insurance (yours and lender's)|
|Loan discount points|
|First payment to escrow account for future real estate taxes and insurance|
|Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)|
|Any documentation preparation fees|
It's an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home.
Ask around. Ask Realtors, lenders and friends. Many counties and cities have 1st time homebuyer programs. An online resource is http://downpaymentresource.com/.
When you purchase a home, make sure to talk to your lender and Realtor about the possibility of seller's concessions. Simply put, these concessions are a set dollar amount or percentage of the purchase price that a seller agrees to contribute to you, the buyer, towards your closing costs which will lower the amount you need to close on the property.