Southhampton PA Mortgage Lender

You’ve done it! You’ve found the perfect property for you and your budget, with a great location and the best interest rate. So what should you expect next in your home buying process? The final step, before you can claim your keys and new home, is signing the contracts and paying the closing costs.

Sometimes a seller will agree to cover closing costs in a transaction but if that wasn’t agreed upon you may have a couple questions. Like, what are closing costs? And, what is my payment going towards?

Here is a list of some of the most frequent closing costs and what they cover:

1. Tilting Fees – these costs are most often covered by the seller but sometimes are covered by the buyer. They include payment for the title search, title insurance and any associated attorney fees.
2. Recording Fees – This fee can be covered by either the seller or the buyer. This includes payment to the government for the change in ownership recorded by the city.
3. Survey Fee – This fee covers the survey that is done to ensure the description of the property matches the size of the land or lot and the structures built on the property. This fee can be covered by either the seller or the lender.
4. Mortgage Application Fees – A mortgage application fee is not common but can be charged on occasion. This is paid by the buyer before closing on the home.
5. Appraisal and Inspection Fees – The lender will require the house to be appraised and inspected to make sure the value of the home matches the amount of the loan. It will need to be inspected to rule out any hidden problems that could decrease the value of the home. The buyer typically covers these fees.
6. Points – Points are paid by the buyer to the lender in an effort to decrease the cost of the final interest rate on the loan. These discount points are equivalent to one percent of the principal of the loan.
7. Brokerage Commission – The brokerage commission is paid by the seller to their real estate agent for listing the property, showing the property and overseeing contract negotiations. The fee is typically a percentage of what the home sells for and is agreed upon between the seller and the real estate agent in advance.
8. Underwriting Fees – These fees are paid by the buyer to the lender. They cover the time it takes the lender to determine whether or not a buyer is approved for a mortgage loan.
9. Property Tax – Typically the buyer is responsible for these fees. When purchasing a home county property taxes are required to be paid 6 months in advance at closing.

Remember you can negotiate with the seller to see if they would be willing to cover the cost of most of these fees. If you’re a singular buyer and there are no other offers on the home you’re looking to purchase you might be able to come to an arrangement with the seller. These are the most common fees you’ll find but be sure to consult your real estate agent to confirm any variances in your closing costs.

For more information on our mortgage program, please contact Bill Mervin Team.

Helpful local public sites in Southhamton, PA:

• Southhampton Township
• Southhampton Chamber of Commerce
• Southhampton School District