Once the loan application has been completed and approved, a home appraisal is ordered. The home appraisal certifies the value of the home you are refinancing or purchasing. After the appraisal is reviewed, a loan closing date and time is scheduled.

The loan closing takes place at an attorney or title company office. All of the documents related to the mortgage loan are reviewed and signed at this time.

Loan Closing Costs:

There are three basic categories of closing costs that the borrower may incur:

• Charges for establishing and transferring ownership of the property. Examples include title search, title insurance, & related legal fees.
• Fees paid to state and local governments including city, county and state taxes, recording fees and prepaid property taxes.
• Costs of getting a mortgage loan. These costs may include charges for a survey, appraisal, loan origination fee, loan documentation fees, hazard insurance, interest prepayments & credit bureau fees.

How can you anticipate how much you will have to pay in closing costs?

The Real Estate Settlement Procedures Act (RESPA) requires all lenders to supply mortgage loan applicants with a Good Faith Estimate of closing costs within three business days of the loan application. This is only an estimate of closing costs.

The closing attorney will review a statement of your actual closing costs & all other documents associated with your loan closing.