Beyond Down Payment: What Will My Mortgage Closing Costs Be?

Beyond Down Payment: 

What Will My Mortgage Closing Costs Be?  



When I first speak with new mortgage clients … especially those that are first-time home buyers … there's often a bit of confusion regarding what costs will be involved in the obtaining of their loan.

After I've spent some time with them detailing the costs of their loan, I find that many say they were surprised to find that they’ll incur additional costs beyond the funds needed for down payment. (Unless, of course, they’re using a 0% down payment program). 

Many had incorrectly assumed that their down payment was all that was needed to buy.  But it's a fact.  There are also several fees, beyond that of a down payment, typically involved in the financing of a home. 


So what are those Costs?  They include, but are not limited to:


Lender Fees:

  • Appraisal
  • Credit Report
  • Application Fee
  • Flood Certification
  • Origination Fee
  • Underwriting
  • Processing
  • Mortgage Interest



Title Company Costs: 

  • Settlement /Closing Fee
  • Owners Title Policy
  • Lenders Title Insurance
  • Endorsements
  • Recording Fee(s)
  • Tax Service Fee
  • E-Mail/Wire Fees


Third Party Costs: 

  • Attorney Fees (if applicable)
  • Home Inspector
  • Surveyor
  • Home Owners Insurance
  • City/County/State - Real Estate Transfer Tax Stamps
  • Condo Association Documents (if applicable)
  • Possibly More, if/when applicable


Now please note:   Costs do vary from Mortgage Lender to Mortgage Lender.  The same goes for title companies and third party vendors involved in the transaction. 


Also:  Each property location being considered for purchase, (state, county, city, subdivisions, etc.) can mean different costs paid at the time of Closing (Monthly Mortgage Payments can also differ even if Sales Price remains the same). That makes it virtually impossible to list and identify specific costs within this article. 


To be fully informed:  Borrowers should take steps to educate themselves regarding cost variations that may exist between the homes considered for purchase. The best source for this needed information?  Your Loan Originator and/or Realtor.


Since the costs listed above are paid in addition to any Down Payment funds needed, Borrowers are asked to show they have the ability to cover their Closing Costs with proven money/funds/balances in accounts ... OR request   that their Seller offer a Closing Cost Credit to pay for all, or a part of, their Borrower’s costs due at Closing.


It's important to note that some states require the Seller to pay or reimburse a Borrower for certain title company charges, and/or real estate taxes, and Transfer Tax charges. Again, the specifics regarding this are tied to the location of the home being purchased. 


My advice regarding Closing Costs is always this …

 

Ask ALL your questions and gain the information you need BEFORE you make your offer ...  


And if you find that you’re working with an Originator or Realtor that is ill-prepared to address your questions or unwilling to provide you the information you need?  Move on. Only work with professionals that will. 


Because only then will you be thoroughly prepared to make a wise decision regarding your choice of home and its financing …



 

     *  Hoping to Buy or Refinance a home in Chicago or elsewhere in the Chicagoland/WI area?  Contact me!  I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:


                                                             Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656


Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

  www.genemundt.com  

                     

Gene Mundt, Mortgage Originator, an Originator with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 


Referrals are Welcomed!

 

  

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

Comments

Just went through this in a CE class yesterday. There are some GREAT apps for this Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Posted by Bob "RealMan" Timm, Bob Timm, Project Coordinator for Tivoli Homes (Tivoli Custom Homes) over 2 years ago

This is important for buyers to know, as especially first-time buyers don't realize all the extra costs involved. This kowledge will avoid any nasty shocks down the line.

Posted by Jane Peters, Los Angeles real estate concierge services (Home Jane Realty) over 2 years ago

Great post, Gene. I've come across the same issue. People are so proud to have their down payment and when you ask about closing costs there's a bit of a blank stare. This one should be featured!

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) over 2 years ago

Gene

This is such an important thing for buyers to know about as early as possible so they are not shocked when time comes to move forward. I always provied an estimate of cos from my perspective (escrow, title, etc.) but tell them to talk with their lender to get the full scoop since I don't have that information. Often buyers don't even know what questions to ask!

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) over 2 years ago

Gene all Buyers need to be made aware of their total costs at the Closing early on.  If not, it is a sobering realization later in the process.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 2 years ago

I get these questions often Gene. Excellent blog that is a big help in answering that simple question, how much do I need each month. I vote this be featured Bob Stewart

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 2 years ago

This is very important information for prospective home buyers to understand.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 2 years ago

These are costs that not only the borrower but also AGENTS need to take into account Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi.

This is why I tell ALL MY AGENTS; don't put buyers in YOUR car to show properties until YOU send them to ME for pre-APPROVAL !

It has saved a couple of them a lot of WASTED TIME  !

Posted by DEANNA EARLY - - ( NMLS # 268590 ), Virginia Mortgage Loan Originator (American National Bank and Trust) over 2 years ago

Good morning Gene. Unfortunately many prospective buyers aren't given good information when getting ready to purchase a home and sometimes not even during the application process.

Well done post!

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 2 years ago

This is a wonderful post Gene! I came over from Debbie Reynolds reblog.

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 2 years ago

Great information for consumers that's easy to understand. It's a shame that buyers don't always get this level of explanation about closing costs.

Posted by Eric Kodner, CRS, Madeline Island Realty, LaPointe, WI 54850 - (Madeline Island Realty) over 2 years ago

Excellent post, Gene.  Very good analysis of costs that many new buyers are unaware of.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 2 years ago

Thank you for the post. I will bookmark this and share it with others. 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 2 years ago

Thanks for excellent post Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi I saw reblog by Gabe Sanders and came right over.  If if I was the ActiveRainFeature Fairy this would be a FEATURED POST.

Posted by Mary Yonkers, Erie/PA Real Estate Instructor (Alan Kells School of Real Estate/Howard Hanna Real Estate) over 2 years ago

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