Sunday, June 3, 2007

· A catchall term for a number of transaction costs that home buyers and sellers have to pay at settlement, including taxes, recording fees, commissions, appraisals, legal fees, credit reports, homeowners insurance, pro-rated interest, points, surveys, inspections, title searches and title insurance.

· An expense that often surprises first-time home buyers, who don't realize their share requires funds separate from their down payment. Closing costs for the buyer typically run 3 to 5 percent of the sales price of the house.

· A list of costs that should be detailed in the good-faith estimate from your lender when you apply for a mortgage.

· An expense of which home sellers usually pick up a greater share when the market slows. New-home builders often advertise that they will provide tens of thousands of dollars toward a buyer's closing costs if he or she uses the builder's preferred mortgage lender.

· An area where home buyers can negotiate savings on fees by shopping around for their title company, insurance provider and mortgage lender.

· An area where consumers can be taken advantage of, if they're not attentive, through added "junk" fees. Some fees often given the junk label include: document preparation fee, origination fee, underwriting fee, processing fee.

· Something you can't pay most of by personal check. You bring a cashier's check or certified check to closing to cover down payment and closing costs, in the amount you're told in advance. There may be some adjustments on closing day. For these, you write a check.