Home Buying FAQs
What are the various closing costs involved in a mortgage transaction?
- Lender Fees – Fees paid to the lender for the processing of your loan, such as loan origination.
- Third-party fees – Fees paid for services rendered by parties other than the lender, such as title insurance, appraisal, flood certification, and recording fees.
- Prepaid Costs – Costs that are collected at the time of closing for items such as prepaid interest, property taxes and hazard insurance.
You will be provided with an estimate of these costs prior to closing.
How much home can I afford?
The amount of home you can afford is based on the amount of mortgage loan you can comfortably handle. This is generally based on 3 factors:
- Your total monthly debt payments as a percentage of your income
- How much cash you have for the down payment and closing costs
- Credit History
Will I need hazard/homeowners insurance?
- As a condition of your loan, you will need hazard insurance. If your property is located in a special flood hazard area, you may need additional flood insurance.