A lot of Sedona home buyers believe that saving the down payment is enough to purchase a home. Don’t forget the closing costs though.
US law requires that a home buyer receive a loan cost estimate from the mortgage lender within 3 days of submitting a mortgage application. Additonally a buyer should also receive a closing disclosure no later than 3 days prior to the close of escrow. The disclosure will include the final terms and details of the mortgage loan and associated closing costs.
What are Closing Costs?
Closing costs are fees paid at the closing of a real estate transaction. This time is called the closing or close of escrow (COE) is when the title to the property is transferred to the buyer. Closing costs are typically incurred by both the buyer and seller. Some closing costs are based on the price of the home.
Closing costs are Usually in the 2% and 5% range relative to your purchase price.
Discuss closing costs with your lender as well as your agent and title company. Together, they can give you a good idea of what it’s going to cost. The biggest expenses for buyers are typically loan origination fee and or points. Points are paid when you want to buy down the interest rate.
Speak with your agent, lender and title company to determine what closing will cost you. Figuring out that you will have to pay thousands just before COE isn’t a shock anyone wants. Here’s a list of lenders in the Sedona area.