In Good Faith Estimate: More Fees at Closing, we discussed
closing costs and the importance of getting a "good faith estimate" from your lender. We
discussed how much you must pay in fees and the various prepaids that will be placed in
escrow. In other words, how much money do you need to bring to the table on closing
day?
Reminder: Keep your copy of the "good faith estimate" and compare it to the final
list of closing costs. Question any changes or additions. Your closing agent should allow
you to review the settlement form one business day before closing.
You may want to preview a sample of the HUD-1 Settlement
Statement at the web site of the Department of Housing and Urban Development. The site
also has other helpful information about closings and
settlement.
At this point, having secured the mortgage loan, you already have paid for the loan
application fee, the property appraisal and some of the down payment. At the closing, you
will need to pay the balance of your down payment. There are other costs that still must be
paid in order to close the sale, unless you already have arranged and paid for them. (If so,
bring receipts and other documentation with you to the closing.) These costs can
include:
- Title search and insurance
- Survey
- Termite or other inspections
- Homeowner's hazard insurance
- Flood insurance
- Taxes
- Attorney and closing agent fees
Additional fees related to the loan:
- Loan origination fee
- Points, if any
- Private mortgage insurance (PMI)
- Balance of your down payment
Reminder: Have separate certified checks for all closing costs. Some of the costs,
such as points, are tax deductible. Also, bring your checkbook, so you can write a personal
check for small miscellaneous expenses such as photocopying.