When it comes to your mortgage you’re going to have options both with which lender you choose to work with and what product best fit your needs. Your buyer’s agent can recommend a loan officers/bank but the choice is ultimately yours. Keep in mind that the person you initially get pre-approved with isn’t the same person that you have to work with to ultimately work your loan. We always recommend shopping your loan once you’ve written a contract.
It is important to understand current market conditions and how interest rates affect your purchasing power or what a higher purchase price equates to in terms of a monthly payment.
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Depending on where you are purchasing property, the price of the property, your lender’s terms, the distribution of fees charged to buyer and/or seller (which can be part of your negotiation when you put an offer on a piece of property) typical closing costs on the purchase of real estate range anywhere between 3% to 7% of the purchase price. Your lender by law must supply you with a pre-settlement “Good Faith Estimate.” (GFE) It will not necessarily give you all of the actual costs; it should give you an idea. Make sure to ask your mortgage professional which costs may not be accurate and make sure you fully understand the GFE.
Depending on where you are purchasing property, the price of the property, your lender’s terms, the distribution of fees charged to buyer and/or seller (which can be part of your negotiation when you put an offer on a piece of property) typical closing costs on the purchase of real estate range anywhere between 3% to 7% of the purchase price. Your lender by law must supply you with a pre-settlement “Good Faith Estimate.” (GFE) It will not necessarily give you all of the actual costs; it should give you an idea. Make sure to ask your mortgage professional which costs may not be accurate and make sure you fully understand the GFE.
Typical Buyers’ Fees …
A Buyer’s Agent pledges to work for the Buyer:
Loan origination fee, usually 1% of your mortgage amount
Discount point (or points), each usually 1% of your mortgage amount
Assumption fee (if you assume the seller’s old mortgage)
Title search fee
Lender’s title insurance fee
Owner’s title insurance fee (optional but advisable)
Survey fee (if applicable)
Two fees that may have been paid when you applied for the loan:
Lender’s inspection fee
Recording fees
Prepaid interest on your mortgage, covering the time between settlement and the first regular monthly payment
Prepaid mortgage insurance premium
Property tax, possible reimbursement to seller and/or payment on future taxes
Assessment, possible 1 to 3 month local improvement charge or association fee (especially applicable to condominium buyers)
Lawyers fees (if applicable)