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Buyer fees are paid to various
service providers in the
transaction. Some are collected
at the time of mortgage
application, such as the
application fee or the credit
report. Most are collected at
closing. Buyer funds are
allocated to the down payment,
closing costs, and prepaid
items. Sometimes your closing
costs and prepaids are paid by
the seller when negotiated in
the contract.
Closing costs are fees for
services necessary to the
transaction. Fees which cover
the appraisal, survey, tax
certificates, escrow fees, loan
application, underwriter,
courier, title insurance, and
attorney are examples of closing
costs.
Prepaids are fees paid by either
you or on your behalf are
collected for payment of a bill
due in the future. Many prepaid
items are put into an escrow
account where they accumulate
until the actual bill is due.
Examples of prepaid items are
taxes, insurance, private
mortgage insurance, prepaid
interest, etc.
Lenders are required to disclose
charges involved in the
financing of the home. The Truth
in Lending Act requires the
lender to disclose credit terms
clearly, conspicuously,
meaningfully, and in writing.
The lender discloses terms by
providing a Good Faith Estimate.
The Good Faith Estimate is only
an estimate. The actual charges
will be affected by information
not known by the lender at the
time of the mortgage
application. These charges will
be affected by the date of
closing, the specific vendors
providing services, the
municipality where the property
resides, and the underwriter
providing funds to you.
At closing, you will sign a
HUD-1 Settlement Statement which
lists the disbursement of all
funds associated with the
purchase. To learn more about
closing costs, prepaids, and the
HUD-1, go to
http://www.hud.gov/offices/hsg/sfh/res/sfhrestc.cfm.
Contact
Me
I can help you with every
aspect of buying or selling your home because I’m
experienced, because I am a Better Homes and Gardens
Rand Realty Real Estate Professional . . .and because I
care.
As
your
Better
Homes
and
Gardens
Rand
Realty
Sales
Professional,
I
will
provide
you
with
the
information
you
need
to
make
an
educated
decision.
The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. I strive to continually improve and to do this I listen and take the needs and wants into consideration.
For assistance with any of your real estate needs, please contact me, whether it's to get started on helping you realize your goals and dreams, or just to ask a question - no pressure, no hassle, no obligation - just a friendly conversation. I would welcome the opportunity to make a difference for you. |
