SGI Realty One Real Estate Blog

'Qualifying" and being "pre approved" are some of the many terms thrown your way when starting your mortgage process.  One term you'll hear often and are your "closing costs".  Many of us are not exactly aware of what consists of closing costs and how much they may cost, here is a breakdown of what to expect:

• Down Payment:  Depending on the type of loan you are getting your down payment will vary - average in today's market is 20%.  However, you can put down as little as 1-3% of the purchase price of the home with the right lender.
• Credit Check: Having your broker run it or running it yourself will cost something - in most cases it is $10-$20.
• Home Inspection:  Not required, but surely recommended, a home inspection will point out any defects that the property may have.  Most run from $200-$400
• Origination Fee:  This can be costly and is what you must pay the lender to write and process your loan ins some cast can be up to several thousand dollars.home inspection:  $300-$500
• Appraisal:  An appraisal will protect you from overpaying for a house that is overpriced it will also limit you from a mortgage being approved for a higher amount than what it is appraised at.
• PMI:  Private mortgage insurance is what many of us are required to pay if putting down less than 20%.  However, if you put this done or pay this in equity you have the option to cancel it in most cases.

These are some of the major costs when it comes to closing costs.  Check back for more next week!

Tim D.

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