July 2014 Blogs

Calculating closing costs:

One of the most confusing things about the process of closing on a home is the variety of closing costs. The costs can include points, financing costs, title insurance and taxes.

These costs can vary across the U.S., can vary by lender, and can also be higher if a buyer's credit rating is low. But, as a rule of thumb, estimate that your costs will be anywhere between 3% and 6% of the price of your home, according to the Federal Reserve Board. As a buyer, it pays to shop around for lenders who offer the lowest closing costs. The FRB offers a very detailed list of common closing costs and their estimated prices.

How can you calculate what your closing costs will be? Follow these steps:

1.  Review your lenders' good faith estimates.  Federal law mandates that lenders provide mortgage shoppers with what's called a "good faith estimate" of settlement fees, or closing costs, that a lender will charge you upon the closing of your home. Good faith estimates -- which include estimations of the mortgage-related closing costs your lender will charge you -- are available to you early in the process, when you are shopping for a mortgage.

Get good faith estimates from two to three lenders and compare their costs. There will be a laundry list of fees noted on these good faith estimates, among them: the loan origination fee, loan application fee, "buydown" points, appraisal fee, survey, title search and title insurance...the list goes on.

Ask about any fees that seem unnecessary -- these may be "junk" fees that can be easily eliminated if you ask your lender.

Using these good faith estimates, try to negotiate lower fees with your preferred lender and ask lenders to meet or best other lenders' offers. Do this comparison shopping before signing for a loan.

2.  Research.  There are several places you can go online to estimate what your closing costs may be. On Trulia, try the SmartClosing Calculator for a calculation of what your closing costs may be by entering in variables like the home's address and your loan details.

FreddieMac.com also offers a closing costs calculator, as well as a closing costs worksheet.

3.  Compare.  At the closing of your home purchase, you will be required to sign a Final Settlement Statement, also known as a HUD-1.

This statement will list the closing costs and fees that will be charged to you, the buyer. By law, you can ask to receive a copy of this statement and view it at least one day before closing.

Be sure to review the list ahead of time, checking that everything is correct. This statement will give you a true picture of your closing costs (and is a better statement of your closing costs than the estimations that were provided in the good faith estimate from your lender.)

Compare the costs on your good faith estimate to those on your final settlement statement -- the fees listed on the settlement statement should compare very closely to those on your good faith estimate.

For more on the settlement statement and federal requirements put into place to protect consumers, read "RESPA - Real Estate Settlement Procedures Act" at hud.gov, the website for the U.S. Department of Housing and Urban Development.





CLICK HERE TO RETURN TO THE HOME PAGE

MLSLincolnWestonRealty

BUYING ADVANTAGES

  • Approximately 45,000 Mass. Listings!
  • Prompt Online Showing Requests
  • Most Professional Buyer Representation
  • Top-Notch Agents to Serve You
  • Over 30 Years Experience
  • Easy Click for Showing
  • Virtual Drive Around the Neighborhood
  • Spectacular Map Search
  • View All Property Listing Specs!

MLSLincolnWestonRealty

SELLING ADVANTAGES

  • Professional, Experienced Sales Force!
  • World-Wide, On-Line Exposure
  • Expert Real Estate Resources
  • Unmatched Property Valuation Methods
  • Specialized High-End Property Services
  • NO FEES unless we are successful
  • State-of-the-Art Marketing Strategies
  • We have the Most Important Selling Tips
  • We Respect your needs: Timing and Price

FEATURED INFORMATION

MLSLincolnWestonRealty BLOGS Provide the Best Real Estate Information & Advice Anywhere!

Homes for Sale In Lincoln MA

With previous property ownership and devel- opment experience in Lincoln, Mass., MLSLincolnWestonRealty possesses the direct knowledge and skills to help you thoroughly understand the real estate climate in Lincoln, MA, make the right decisions, and buy or sell a home with confidence. Our buyer or seller representation is unsurpassed anywhere in the State. With a limited inven- tory of homes for sale in Lincoln, MA, you need the best advice possible. Please contact us during our extended hours of 8:00 a.m. to 8:00 p.m. seven days a week.

Boston and Vicinity

Whether it's homes for sale in Lincoln, Mass., homes for sale Weston, Mass. or anywhere else in the Boston, Massachusetts area, MLSLincolnWestonRealty is devoted to being the best real estate brokerage firm anywhere in Massachusetts. Our techno- logical sophistication and innovations, over thirty years experience in sales, property management, development, renting and leas- ing in both residential and commercial/ industrial real estate are just some of the reasons you simply must give us a try. You'll be very glad you did!  CALL US TODAY!

Homes for Sale In Weston MA

In this dynamic and exclusive market MLSLincolnWestonRealty offers the most powerful tools, professional service and invaluable expertise to find the right home for you if you are shopping for houses for sale in Weston, MA. Our extensive experience within the Weston, Mass. real estate market makes us the best choice for marketing your house for sale in Weston, Massachusetts Our extended hours and passion for our work are only some of the reasons we will do a better job for you than any other real estate broker out there.

Scope of Services

MLSLincolnWestonRealty provides expert real estate and relocation services for residential real estate, single-family homes, high-end luxury homes, condominiums, multi-family homes, rental properties, mobile homes, commercial/industrial real estate, land, business opportunities, and much more with special emphasis in Weston, Lincoln, Brookline, Newton, Wellesley, Lexington, Wayland, Sudbury, Concord, Cambridge, Boston, Belmont, Sherborn, Dover, Needham, Lynnfield, Marblehead and all other surrounding greater Boston communities. MLSLincolnWestonRealty can also assist buyers and sellers with their specific real estate needs throughout the entire State of Massachusetts. We are the premier luxury residential real estate brokerage firm.

With an Exclusive Buyer Agency relationship, MLSLincolnWestonRealty provides our loyal and dedicated home buyers with the absolute best tools, resources, services, skills and expertise to provide them with tremendous savings and great satisfaction with their real estate purchases. Finding the right home and making the right home purchase are not always easy, but with MLSLincolnWestonRealty at your side every step of the way your chances of success with buying the right home in Massachusetts will increase exponentially.

As a highly skilled listing real estate agency, MLSLincolnWestonRealty provides our home sellers and other clientele with unparalleled knowledge, marketing programs and hard work to succeed with the sale of real estate in Massachusetts. This turn-key real estate power-house will enable you, the seller, to obtain a premium market price for the sale of your real property in the least time possible.
OUR SERVICES INCLUDE THE FOLLOWING TOPICS and AREAS: Homes for sale in Lincoln MASS., Homes for sale in Weston MASS., Weston MASS. Homes for Sale, Lincoln MASS. Homes for Sale, Boston Mass. Homes for Sale, Weston MASS. Real Estate, Lincoln MASS. real estate, Boston Mass. Real Estate, Massachusetts real estate listings, Massachusetts Real Estate Agent, Boston, Mass. Real Estate, MLSLincolnWestonRealty, MLS, Lincoln MASS., Concord MASS., open houses, school and community info, agents, offices, realtors, MLS listings, properties, home search, residential, land, adult community, mortgage, pre-approval, interest rates, relocation, moving, MA, Online Home Search, Find Homes Online, Mass Real Estate, Boston Homes, Cambridge, Mass. Real Estate, Massachusetts Real Estate, Massachusetts Homes PETER GOTTLIEB, BROKER/AGENT
(781) 235-7727