Making an Offer And Closing

Once you have found the right home, it’s time to submit an offer. In order to streamline the process, keep written records of everything from counter-offers to addendums. If your offer is accepted, you will begin the closing process. You will need to have a licensed property inspector inspect the property within the time frame that was agreed upon. Either a title company or an attorney will be selected as the closing agent. The closing agent will hold the deposit in escrow and ensure that the title is good to go for the closing date.

Here are some of the fees you can expect:

Lender Fees

• Loan Origination Fee: Covers the costs of evaluating and processing your mortgage loan.
• Appraisal Fee: The fee for having your new home appraised. (May be rolled into the closing costs.)
• Credit Report: Covers the expense of your credit history report.

Escrow Fee

• Escrow Account Fees: A trust account created by a third party to hold money. Generally, this money goes to pay property taxes and insurance. To fund the account, your monthly mortgage payments may include one-twelfth of your annual property taxes and insurance charges. The first escrow fee may be due at closing.

Title Fees

• Title Search: Examination of public records to ensure that no one but the seller has a valid claim to the property.
• Title Insurance: Insurance that protects the lender and buyer from losses that may result from disputes over the property’s title. Typically, the buyer purchases the Lender Title Insurance.

Other Third Party Fees

• Document Preparation: Charged for the preparation of the closing documents.
• Underwriting Fee: Covers the costs of the underwriting process, which is the analysis of the risk involved in making a mortgage loan.