| Closing costs are often the last thing a
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| | that doesn't require you to pay points.
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| person thinks of when buying a home.
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| | Home and Title Insurance
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| While closing is the joyous moment the
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| | Insurance for your home and title are a
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| home becomes yours, the costs can be
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| | must. If you are borrowing money to
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| surprisingly aggravating.
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| | purchase the home, each is mandatory. If
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| When you purchase a home, condo or other
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| | you are using your own funds, you should
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| property, you will go through a period
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| | still get both forms of insurance. As
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| known as escrow. During escrow, various
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| | each name implies, they provide insurance
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| issues related to the property transfer
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| | against issues involving your home and
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| are worked out. The last day of escrow is
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| | problems with the title transferred to
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| known as the closing day and you are
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| | you. You want to have clear title.
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| going to be paying closing costs.
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| | PMI
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| Closing costs come in many forms. Some
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| | Private Mortgage Insurance, "PMI", is
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| involve significant dollars while others
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| | mandatory if your down payment is less
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| are relatively painless. Here's a list of
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| | than 20% of the purchase price. You can
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| typical costs:
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| | expect to pay a few hundred dollars a
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| Escrow Fees
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| | year in PMI.
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| An escrow agent is essentially a third
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| | Inspections, Appraisals and Miscellaneous
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| party that works with the seller and
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| | Fees
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| buyer to finalize the transaction. For
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| | In the home purchase process, you are
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| this assistance, the escrow agent will
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| | going to use a variety of services to
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| charge a fee. Depending on your area and
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| | validate the property is your dream home.
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| the agent, you can expect fees from a few
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| | These services come with fees and you can
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| hundred dollars to around a thousand or
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| | expect to pay for home inspectors,
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| so. Make sure you find out the fees
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| | appraisers and the like. Depending upon
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| before picking an escrow agent.
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| | the state you live in, many of these fees
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| Home Loan
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| | may be built into your mortgage.
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| Obtaining a home loan in the current
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| | Nonetheless, you need to know exactly
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| market is a highly subjective event.
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| | what you must pay for on closing day so
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| "Points" can be a major cost associated
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| | you can budget accordingly.
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| with home loans. Points are essentially a
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| | Closing escrow should be one of the
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| fee you pay or have build into the loan
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| | happier days in your life, particularly
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| for the privilege of being allowed to
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| | if it is for your first home. Make sure
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| borrow money. A point usually equates to
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| | you know the costs associated with it so
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| 1% of the loan. On a loan of $300,000,
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| | you don't have to spend the day running
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| one point would equal $3,000. If you have
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| | around borrowing money.
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| excellent credit, you can shop for a loan
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