Reviewing Your Closing Costs – The GFE
December 30, 2009 by Rob Spring · Leave a Comment
Settlement costs
There are so many different charges involved in buying a home, it is important to know what to expect at the settlement. Your lender is required to give you a Good Faith Estimate (GFE) of your settlement costs within three business days of your loan application. Once you get it, review the charges below [...]
What is PMI?
November 29, 2009 by Rob Spring · Leave a Comment
Private Mortgage Insurance Helps You Get the Loan
Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided [...]
401K Down Payment Assistance
November 23, 2009 by Rob Spring · Leave a Comment
You’ve finally found the home of your dreams. There’s just one thing standing between you and your new house: The down payment.
Many home buyers today opt to use funds from their employer’s 401(K) program to come up with the down payment on a house. Ordinarily, you can’t take money from your 401(K) plan unless you [...]
Tax Related Closing Costs
November 20, 2009 by Rob Spring · Leave a Comment
Tax Closing Costs
Property Taxes
This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, [...]
Reading the HUD-1 Settlement Statement
November 20, 2009 by Rob Spring · Leave a Comment
The HUD-1 Settlement Statement
The HUD-1, also known as the settlement statement, is a prescribed form from the U.S. Department of Housing and Urban Development (HUD). This form itemizes all charges imposed on the borrower and all charges imposed on the seller in connection with the settlement of your real estate transaction. One business day before [...]
Financing Your Closing Costs
November 20, 2009 by Rob Spring · Leave a Comment
Should you consider financing closing costs, escrow reserves, or other cash needed at closing?
If you’ve built up some equity in your home, when you refinance, you may be able to “cash out” some of that equity to pay off credit cards or other revolving debt, improve your home, help pay for college, or anything else [...]
Estimating Your Insurance Related Closing Costs
November 20, 2009 by Rob Spring · Leave a Comment
Insurance Closing Costs
Homeowner’s Insurance
This insurance covers replacement costs for damages caused by fire, wind or other disaster that might affect the value of the property. Typically, the insurance also includes personal liability and theft coverage.
Flood or Quake Insurance
Additional hazard insurance coverage that is required for homes located in a designated hazard zone as established by [...]
Closing Costs Related to Your Loan
November 20, 2009 by Rob Spring · Leave a Comment
Loan-Related Closing Costs
Loan Origination Fee
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.
Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of [...]
Anticipating Closing Costs
November 20, 2009 by Rob Spring · Leave a Comment
Closing Costs
There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.
As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to [...]