Should I be prepared to pay anything at close other than the down payment?

  1. Overview
  2. Lending Process
  3. Should I be prepared to pay anything at close other than the down payment?

The simple answer is YES.

Closing costs (which are all fees and costs above and beyond your down payment) are a part of any purchase or refinance. The amount will vary depending on the loan amount that you are applying for, the sales price (for a purchase), and the loan program/interest rate that you select. Most closing costs are not loan related costs, but rather they are 3rd party fees such as: Independent Escrow and Title fees, Homeowner’s Insurance Policy, prorated Property Taxes, County Recording fees, etc. Loan costs are generally limited to your credit report, appraisal, underwriting fee, and occasional costs for property specific searches like a verification that your home is not in a flood zone. Beyond that, if you are paying ‘loan fees’ it is likely because you have selected a rate that comes at a ‘cost’ (also known as ‘points’ or a ‘discount fee’).

At Amerifund, it is our policy is to present clients with 3 rate options: 1 that comes at a cost, 1 that comes at no cost, and 1 that offers a credit from the lender to help offset those other charges that we just described above (sometimes offering a No Cost loan option). Whether you decide to buy down your rate by paying points or choose a rate that offers a lender credit, one thing you can always count on from us is that we will be honest and transparent with you about the amount of funds you should be prepared to bring in at closing. We work diligently to ensure that you not only understand the decisions you make, but that you are selecting the best loan program and interest rate for your specific circumstances, as everyone is different. What was best for your co-worker, may not be best for you.

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