At Sammamish Mortgage, we believe in full transparency around your mortgage rates. When it comes to your closing costs, we guarantee no surprises. But what are mortgage closing costs, and how do they affect the final cost of your home loan?
Mortgage Closing Costs
You pay closing costs when you close on your home loan, the day you sign your final purchase agreement. Your closing costs are usually foreshadowed in a loan estimate, given to you a few days after you apply for a loan, and repeated in your closing disclosure, given to you a few days before you close your home loan. The loan estimate and closing disclosure should be nearly identical.
How Much Are Closing Costs?
Closing costs are usually anywhere from 2% to 5% of the total purchase price of your home. Some of your costs may be paid from money you put in an escrow account as earnest money and to cover other fees during the home loan approval process.
You’ll usually have some of that money leftover by the time you get to closing. Alternatively, the seller might pick up some of the closing costs, if legally allowed in your state, or you might qualify for an assistance program that will cover some or all of these costs for you.
What is Calculated as a Closing Cost?
Costs that will need to be paid during the home buying process or paid at closing include but aren’t limited to:
- a loan origination fee or application fee (try to negotiate these away if your lender attempt to charge them)
- discount points (to lower your interest rate)
- an upfront mortgage insurance premium (if required)
- appraisal fees
- an underwriting fee (another item that can usually be negotiated away)
- pest inspection (if required)
- flood certification (if required)
- homeowners insurance
- title search, owner’s title insurance and lender’s title fees
- escrow fees
- appraisal fees
- property taxes
- attorney fees
Remember, as a buyer, you don’t have to pay real estate agent commissions.
What Fees Can Be Guaranteed?
While most mortgage lenders provide only a cost estimate, Sammamish Mortgage provides guaranteed closing costs. We guarantee not only the lender fees but guarantee the costs of third party service providers as well.
- Fees we guarantee include Appraisal Fee, Credit Report, Flood Cert, Tax Service, Settlement Agent, Lender Title Insurance, and all Government Recording and Transfer Charges.
- Guarantee of Settlement Agent, Lender Title Insurance and Government Recording charges requires the use of our recommended providers. You may choose to use different service providers, in which case these fees are not guaranteed.
- Guaranteed fees on purchase transactions include only standard fees paid by the buyer. Fees normally paid by the seller that the buyer agrees to pay are not included in our guarantee.
- Prepaid items such as property taxes, insurance and daily interest collected at closing, are not guaranteed. Charges by your current lender in connection with your payoff on a refinance are not guaranteed. These items are not lender specific and will be the same regardless of which mortgage company you choose to work with.
- Potential fees associated with subordinating a 2nd lien or your HOA are not guaranteed. We will contact the 2nd lien holder or HOA as early in the process as possible to get their cost quotes.
Guaranteed Closing Costs in WA, OR, CO, ID or CA
Now is a great time for looking into buying a home. You can use our free Instant Rate Quote tool and Rate Tracker to find out how much you could be saving every month or over the life of your loan.
Working With Sammamish Mortgage
At Sammamish Mortgage, all of our Loan Officers (LOs) are salaried. This means they always put the client first, making sure you get the best loan for your budget, not the biggest one to earn a commission.
We offer some of the most competitive rates in the nation, and it’s our goal to give you a hassle-free home loan experience. We’re proud to say we close most of our loans in 30 days or less. We offer a wide variety of home loans, including FHA and VA loans, so you can start looking for a home as soon as possible.
For more information on your home mortgage options, feel free to contact us today. We currently lend in all of Washington, Oregon, Idaho, Colorado and California and have been offering mortgage programs to borrowers since 1992. Our friendly team of experienced mortgage professionals will advise you on which home loan program best meets your needs.
Are you ready to apply for your home loan and lock in a low interest rate? If so, Sammamish Mortgage can help you get started. Get in touch with us today!