There are many costs associated with purchasing your own home, for example you will have a monthly mortgage fee, you will make a down payment, you may have to pay private mortgage insurance, and you will be responsible for paying for closing costs. Closing costs are the expenses you are required to pay when you finalize your mortgage. If you are located in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to learn more about closing costs and the amount you will be expected to pay, contact Foundation Mortgage. Our loan specialists can help you determine the best mortgage option for your situation, and what you can expect to pay in closing costs.
Closing Costs: Essential Information
Closing costs consist of all the fees you must pay when the sale of the home is officially complete that do not include your mortgage fee or your down payment. The amount you will pay for closing costs depends on many factors, such as the type of loan you obtain, the type of property you are looking to buy, and the area you are interested in living, and they typically end up costing 2%-5% of the total cost of the home. In most cases, you will need to pay for closing costs when you purchase your new home or when you refinance a currently-held mortgage, and in certain instances, your closing costs can be negotiated to a lower price and can be financed into your monthly mortgage payments.
The Fees Associated With Closing Costs
There are a number of fees associated with closing costs that typically include:
- Loan origination fee – The fee a lender charges to process and underwrite the loan
- Appraisal fee – The fee you pay an appraisal company in order to determine the value of the property
- Application fee – The fee associated with paying a lender to process your application to take out a loan
- Taxes – The fees you will pay for property taxes and the tax that is charged to transfer the title from buyer to seller
- Title insurance fee – the insurance fee charged to ensure protection against another party claiming ownership of the property
- Title search fee – the fee charged to ensure there are no previous lien or ownership issues with the property
Understanding Closing Costs
There are many factors to consider when buying your own home, and sometimes understanding the different costs associated with the process can be overwhelming. If you are looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can work closely with you to help you better understand what you will pay in closing costs. Contact our office today for a consultation.