For first time buyers, the amount of money that is needed to seal the deal can often come as a bit of a shock. Known as the closing costs of the deal, this amount of money involves a number of different factors that can add up to several thousand dollars out of pocket for the buyer. You should be prepared ahead of time to pay this amount—or find alternative ways to take care of them. What Things Fall Under Closing Costs? Some of the things you will commonly see included in closing costs are a number of fees and types of insurance. First of all, there are origination fees on the loan, which are usually a percentage of the amount financed. You will also see an appraisal fee and a credit report fee, both of which the buyer is usually responsible for. There are also fees for the home inspection and other possible fees such as bank processing fees and flood certification. You will also have to pay for the homeowner’s insurance policy on the home for the first year in order to close, and for title insurance. You may also have to pay property taxes on the home. How […]
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