{"id":9453,"date":"2026-03-13T16:35:24","date_gmt":"2026-03-13T16:35:24","guid":{"rendered":"https:\/\/www.visibeetech.com\/eddierod\/?page_id=9453"},"modified":"2026-03-13T16:39:18","modified_gmt":"2026-03-13T16:39:18","slug":"closing-cost","status":"publish","type":"page","link":"https:\/\/www.visibeetech.com\/eddierod\/closing-cost\/","title":{"rendered":"Closing Cost"},"content":{"rendered":"\t\t
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MORTGAGE BASICS<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Closing Cost<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A closing cost is a payment required to finalize a home loan and is separate from a down-payment. Read about closing cost, their purpose, how you can pay them and more by clicking learn more below.<\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat Happens at Closing?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

“Closing” is the last step of buying and financing a home and when the property is officially transferred from the seller to you. At Closing you and all the other parties in the mortgage loan transaction sign the necessary documents.<\/p>

Your Closing may include some or all of these entities: real estate agents, your attorney, the seller\u2019s attorney, lender’s representative, title and escrow firm representatives, clerks, secretaries, and other staff. Closing can take anywhere from 1-hour to several depending on contingency clauses in the purchase offer, or any escrow instructions needing to be executed.<\/p>

Most paperwork in closing or settlement is done by attorneys and real estate professionals. You may or may not be involved in some of the closing activities; it depends on who you are working with.<\/p>

Prior to closing you should have a final inspection, or “walk-through” to insure requested repairs were performed, and items agreed to remain with the house are there such as drapes, lighting fixtures, etc.<\/p>

In most states the settlement is completed by a title or escrow firm in which you forward all materials and information plus the appropriate cashier’s checks or bank wire so the firm can make the necessary disbursement. Your representative will deliver the check to the seller, and then give the keys to you.<\/p>

Click here to\u00a0Pre-Qualify<\/a>.<\/p>

You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities.\u00a0 It is recommended that you get pre-approved before you start looking for your new house so you:\u00a0<\/p>

  1. Look for properties within your range.<\/li>
  2. Be in a better position when negotiating with the seller (seller knows your loan is already approved).<\/li>
  3. Close your loan quicker<\/li><\/ol>

    More on Pre-Qualification<\/b>
    \u00a0\u00a0\u00a0\u00a0\u00a0    LTV and Debt-to-Income Ratios<\/a>
    \u00a0\u00a0\u00a0\u00a0\u00a0    FICO\u2122 Credit Score<\/a>
    \u00a0\u00a0\u00a0\u00a0\u00a0    Self Employed Borrower<\/a>
    \u00a0\u00a0\u00a0\u00a0\u00a0    Source of down payment<\/a><\/p>

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    LTV and Debt-to-Income Ratios<\/b>
    LTV or Loan-To-Value ratio is the maximum amount of exposure that a lender is willing to accept in financing your purchase. Lenders are usually prepared to lend a higher percentage of the value, even up to 100%, to creditworthy borrowers. Another consideration in approving the maximum amount of loan for a particular borrower is the ratio of monthly debt payments (such as auto and personal loans) to income. Rule of thumb states that your monthly mortgage payments should not exceed 1\/3 of your gross monthly income. Therefore, borrowers with high debt-to-income ratio need to pay a higher down payment in order to qualify for a lower LTV ratio.<\/p>

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    FICO\u2122 Credit Score<\/b>
    FICO\u2122 Credit Scores are widely used by almost all types of lenders in their credit decision. It is a quantified measure of creditworthiness of an individual, which is derived from mathematical models developed by Fair Isaac and Company in San Rafael, California. FICO\u2122 scores reflect credit risk of the individual in comparison with that of general population. It is based on a number of factors including past payment history, total amount of borrowing, length of credit history, search for new credit, and type of credit established. When you begin shopping around for a new credit card or a loan, every time a lender runs your credit report it adversely effects your credit score. It is, therefore, advisable that you authorize the lender\/broker to run your credit report only after you have chosen to apply for a loan through them.<\/p>

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    Self Employed Borrowers<\/b>
    Self employed individuals often find that there are greater hurdles to borrowing for them than an employed person. For many conventional lenders the problem with lending to the self employed person is documenting an applicant’s income. Applicants with jobs can provide lenders with pay stubs, and lenders can verify the information through their employer. In the absence of such verifiable employment records, lenders rely on income tax returns, which they typically require for 2 years.<\/p>

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    Source of Down Payment<\/b>
    Lenders expect borrowers to come up with sufficient cash for the down payment and other fees payable by the borrower at the time of funding the loan. Generally, down payment requirements are made with funds the borrowers have saved. If a borrower does not have the required down payment they may receive \u201cgift funds\u201d from an acceptable donor with a signed letter stating that the gifted funds do not have to be paid back.<\/p>

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    \u00a0<\/h2><\/div><\/div><\/div><\/div><\/div><\/div>
    \u00a0<\/div><\/div><\/div><\/div><\/div><\/form><\/div><\/div><\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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    These are expenses you have to pay to state and local agencies, even if you paid cash for the house and didn’t need a mortgage:<\/p>

    Transfer Taxes<\/strong>\u00a0\u2013 Required by some localities to transfer the title and deed from the seller to the buyer.<\/p>

    Deed Recording Fees<\/strong>\u00a0\u2013 To pay for the County Clerk to record the deed and mortgage, and to change the property tax billing.<\/p>

    Pro-Rated Taxes<\/strong>\u00a0\u2013 Property taxes may need to be split between the buyer and the seller since they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for 2-months, and the seller would owe for the other 10-months. Pro-rated taxes are usually paid based on the number of days, not months of ownership. Some lenders may require you to set up an escrow account to cover these bills. If not, you may want to set one up yourself to insure the funds are set aside for these important expenses.<\/p>

    State & Local Fees<\/strong>\u00a0\u2013 Other state and local mortgage taxes and fees may apply.<\/p>

    1) Fixed Rate Mortgage<\/b><\/p>

    Fixed rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same.\u00a0 You would select this type of loan when you:<\/p>