About Closing Costs



OK, how much will have to save to purchase a home?   
That depends greatly on the product, program and down payment you choose.  Let’s break it down.
Down Payment
First you’ll need to think about a down payment.  Usually this amount is somewhere between 0% and 20% of the property sales price.  You can always put down more, but many clients choose a lower down payment option. Programs featuring low down payments offer options between 0% and 5% and are determined by the loan type, property type and whether you’ll live in the property.
Closing Costs
You’ll also need to consider of all the fees and charges that must be paid to complete the purchase and any escrows like homeowners insurance, property taxes or other potential escrows. 
Prepaid fees and charges cover:
Your appraisal, your credit report, county or municipality recording fees or governmental agencies like FEMA for Flood Certificates. You’ll also pay for Attorney, title insurances and settlement fees.

I hear about low or no closing cost mortgages what does that mean?
Depending on the type of mortgage you choose, a low or no closing cost option may be available.  
There are a variety of ways this can be done.  You may qualify for a grant from a local or governmental agency that can be used for closing costs and/or down payment.  You may negotiate a seller credit that can cover some or all of your closing costs and there are interest rate options that may provide funds for your transaction