For a first-time homebuyer, closing costs can be confusing. Several factors influence the final settled amount of closing costs. Loan discount points are one factor. One discount point equates to 1 percent of your loan principle. The more loan discount points you buy, the lower you interest rate, but you pay for those points at closing.
Prepaid items also influence closing costs. Home loan lenders require buyers to pre-pay a portion of property taxes and homeowner’s insurance into an escrow account. Other examples of closing costs include credit report fees, loan application fees, appraisal fees, survey fees, attorney fees, title insurance fees, and government record and transfer fees.
It is possible to negotiate for someone else to pay these costs, like the seller; otherwise, you are responsible to pay them at closing. There are professionals available to answer your questions and address your concerns about closing costs. Andraya Coulter, a loan officer in the San Francisco Bay Area, is one such resource. For more information about closing costs in Northern California, please contact Andraya Coulter in the Bay Area.