You’ve found your dream home, and you couldn’t be more excited. You’re all set to start the process of moving in, but first, you’ll need to complete the closing process. That means sitting down at the closing table and singing your name more times than you probably have in your entire life.
But besides signing your name, there are a few other things you’ll need to take care of like getting homeowner’s insurance and bringing your closing costs to the title closing. If you’ve never closed on a home before, you might be wondering what all is included in closing costs. Fortunately, you’ve got our team of title closing agent pros at Liberty Title in Minnesota to walk you through it. Here are a few things you may find included in your closing costs:
1. Origination Fees
Your origination fee is the compensation paid to your lender for setting up your loan. It’s the fee you pay for your lender to process the application on your mortgage loan. This is typically figured by the overall percentage of your loan and is usually one percent or less of the total loan.
2. Buyer’s Title Insurance
Buyer’s title insurance is optional title insurance to protect home buyers from problems with the title. If a problem should arise down the road from a mistake on the title or an outside party making a claim to the title, buyer’s title insurance will protect your investment so you don’t have to worry about losing your title and money.
3. Lender’s Title Insurance
Like buyer’s title insurance, lender’s title insurance protects against past problems or issues with the title. However, unlike buyer’s insurance, lender’s insurance is not optional. The costs will be figured into your closing costs and are minimal expenses to protect your lender.
4. Abstractor Exam Fees
A title abstractor will research the title. An examiner will then examine government records and other documents to make sure everything on the property is recorded correctly. They’ll also be on the lookout for problems with previous transfers of ownership.
5. Pro-rated Property Taxes
You’ll need to pay pro-rated property taxes for the time you take ownership of the property. They will be calculated backward or forward from the day that property taxes are due and added onto your closing costs.
Twin Cities Title Closing Company
At Liberty Title, we love helping homeowners get through a smooth, straightforward closing and into the business of living their lives. Whether you’re refinancing or purchasing your first home, we’re here to help. We’ll make sure you understand the entire process from start to finish.
We can even assist with short sales, reverse mortgages, and more. Talk to our title closing agent team by calling us at 763.494.0340, or contact us to speak to a representative.