What can I expect at closing?

A. This is the formal process of transferring the title to the property from the seller to you.

B. Your lender should give you an estimate of closing costs when you apply for your loan. Some of these costs consist of:Origination Fees – this covers lender’s administration cost of processing the loan. Loans are available with no origination fees but the interest rate is usually higher.Property appraisal – the lender needs to know if the value of the property is sufficient to secure the loan should you fail to repay the loan. The appraiser considers sales prices of comparable homes and other factors to determine value.Title Insurance charges – this protects the lender against loss due to problems or defects with the title. Owners title insurance is available, upon request by the buyer, to protect your equity.Attorney fees – you are required in South Carolina and North Carolina to use an attorney of your choice.Items paid in advance – this would include mortgage insurance, the first year hazard insurance, and flood insurance, if required.Escrow accounts – these are the reserve amounts of taxes, hazard insurance, mortgage insurance, and flood insurance, if required. (Not all loans require escrow accounts.)Recording and transferring fees.Flood Certification – this document verifies whether or not the subject property for a mortgage is in a Flood Hazard Zone.Exact closing costs depend on the type of financing you choose. The total costs may be between 2% to 6% of the mortgage loan amount.

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