These can be confusing -- we are happy to help you understand them.
There are certain standard costs associated with a sale or refinance of a home.
In a sale these fees are negotiable to be split between the buyer and the seller, as spelled out in the sales contract. And, in the case of a refinance, they can be paid up front or built into the interest rate and/or the proceeds of the loan - all negotiable.
THIS IS A VERY CRITICAL PART OF ANY TRANSACTION
Matrix is commited to working for you; in your best interest. We will not only work to get the sales price you want; we will also work to limit the number of closing costs for which you will be responsible in a sale. And, in a refinance, we will tailor the loan and costs to best serve your situation -- every transaction is unique and special!
We will walk you through the closing costs, answering any questions you may have, explaining which costs should or should not be yours and which are negotiable.
Good Faith Estimate
Buyers and Borrowers will receive a "Good Faith Estimate" of closing costs within 3 days from taking your application. The estimate is the platform from which you can base your decision to proceed. We will be glad to review the "Good Faith Estimate," answering questions and explaining the variables of costs and prorations.
Standard Closing Costs
Loan-Related Costs (none of these need to be paid up front and any or all can be paid within the pricing of the loan - "no cost, no points")
- Loan Origination Fee (optional)
- Points (optional)
- Appraisal Fee (may also be optional)
- Credit Report
- Interest Payment (pay-off old loan and/or odd days of new loan)
- Impounds Account (set up to pay property taxes and home owners insurance together with your monthly loan payment) - (optional)
- Title Insurance (lenders policy to guarantee their security in the property)
- Escrow Fee (title officers fee to handle the exchange of documents and monies)
**ALL ITEMS ARE ALSO DESCRIBED IN "GLOSSARY" (in this website)**
- Property Taxes (every county has their own tax base needs)
- Mello-Roos or Special Assessments (applies to purchase/sales only)
- Transfer Taxes (purchase/sales only)
Insurance, Title & Escrow
- Hazard Insurance (Sometimes called "homeowners insurance" to protect against hazards like fire, theft and liability)
- Flood and/or Earthquake Insurance (if applicable)
- Private Mortgage Insurance (*PMI - if applicable *it can be avoided)
- Title Insurance - this can take the form of an Owners Transfer Title Policy (seller guarantee) or a Lenders Title Policy (the guaranatee to the lender that there are no "surprise" liens or encumbrances).
- Escrow costs vary, but include most of the following: Settlement Fee, Notary Fee, Document Preparation Fee, Courier or Wire Transfer Fee and Recordation Fees. (again, how these are paid is all up to how you want to handle the transaction)
**Remember: "no cost, no fee" always comes at a premium. The services above all have their part in any transaction and need to be paid from some part of the transaction -- the wisdom is in knowing what best serves your personal situation. That's where a good agent will shine!!