What's Up With Closing Costs?

There are a number of fees associated with a mortgage loan outside of the purchasing price. Middlestead Mortgage does everything possible to keep these costs down and/or present you with options. Closing costs can range from 3% to 5% of the price of the home and must be paid at time of closing. They can either be paid outright in cash or included as part of the mortgage agreement and amortized into your monthly mortgage payments. The costs will be paid in addition to the purchase price (in the case of the buyer's expenses) or deducted from the proceeds of the sale (in the case of the seller's expenses).

Closing costs involve a variety of one-time fees and associated affiliates including:
• Mortgage origination fees
• Title search
• Title insurance premiums
• Recording fees
• Appraisal fees
• Lender fees
• Broker fees
• Closing agent fees
• Attorney's fees (where applicable)
• Discount points
• Mortgage insurance (PMI)
• Survey fees (if required)
• Transaction taxes

The amount of cash necessary for closing on a home depends on a number of items. Generally speaking, though, you will need to supply:

• Earnest Money: The deposit that is supplied when you make an offer on the house
• Downpayment: A percentage of the cost of the home that is due at closing
• Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Note: There are loans available now that would require only a small earnest money deposit. If you fall into the category of having little or no downpayment, we can help structure an offer-to-purchase that would allow the seller of the property you're interested in purchasing to pay for the closing costs.

If you have any questions regarding your particular closing costs, please feel free to contact us.

CONTACT US about Closing Costs.