Monies You’ll Be Responsible to Provide at Closing:

As a Buyer, if you are purchasing your new home subject to a mortgage, you will have certain costs that will be settled at your closing. Some of these may vary by state but as a general rule, before they hand you the keys, you will be handing them:

Down payment:  This is the difference between your purchase price and your mortgage and ultimately represents how much equity you will possess on day one.

Escrow funds: Your mortgage lender will require these funds at closing to make sure that there’s enough money in your account to pay upcoming tax and insurance.

Third-party fees: Third party costs incurred in the processing of your loan. ie: appraisal fees, title insurance & fees for your credit report if applicable.

Per diem interest: This covers the daily interest cost covering the time frame between your closing date & your first mortgage payment due date.

Homeowners association (HOA) dues: If your new home requires HOA or Condo Assoc dues, you may be required to pay the first year’s cost at closing. Sometimes this is negotiated with the seller and if they have paid the fees as part of your agreement, they should provide proof of payment at closing.

Discount points: A discount point is a fee you’ve agreed to pay to lower your interest rate. This is due at closing.

Commission:  Though this is typically a seller’s cost, if you’ve agreed to pay your agent any part of the commission due, that will be deducted at closing.

If you have any other costs, they will be detailed on your Closing Disclosure form which you will receive 3 days prior to your closing date for review. If you question any of the costs on that document, contact the closing agency asap to ensure your closing is not delayed.