›  What happens at closing ?

At the closing, ownership of the newly purchased home is officially transferred from the seller to you.

›  Statutory Costs

Statutory costs are expenses you would have to pay to state and local agencies even if you paid cash for the house and did not need to take out a mortgage.

›  Third-Party Costs

Third-party costs are expenses paid to others such as inspectors or insurance firms.

›  Finance and Lender Charges

These are charges such as the origination and application fees, points, credit report and lender's attorney fees.

›  Other Up-Front Expenses

The major portion of other up-front expenses is the deposit or binder you make at the time of the purchase offer and the remaining cash down payment you make at closing.

›  What is RESPA ?

The Real Estate Settlement Procedures Act (RESPA) contains information on the settlement or closing costs you are likely to face.

›  What is "Truth in Lending" ?

Mortgage lenders are required to give you a Truth in Lending (TIL) statement containing information on the annual percentage rate, the finance charge, the amount financed, and the total payments required.

›  Negotiate Savings on Closing Costs

There are several ways to make sure your closing costs are as low as possible, and they all involve negotiation.