What Are Closing Costs On A Home Loan

You might be able to buy a home for little or no closing costs or down payment. Please call (303) 222-0027 or e-mail contact@firsttimehomebuyersdenverco.com for a free list that compares first time home buyers loan programs in Denver.

Closing costs on a home loan can add up to 1%-2% of the amount of the loan. As an example, if you are borrowing $200,000, closing costs could equal $2,000-$4,000.

Part of why it’s important to compare home loans is because closing costs can vary significantly from mortgage company to mortgage company.

The good news is that you might be eligible for closing costs assistance, through one of the first time home buyers programs in Denver. Many of these programs also offer down payment assistance, which means that you can buy your first home without having to come up with much money!

Typical closing costs on a home loan include:

• loan origination fee
• discount points (if you’re “buying” a better interest rate)
• property appraisal fee
• credit report fee
• title insurance fee
• recording fees

If you’re shopping around for a loan for your first home, it’s a good idea to ask for good faith estimates from 2-3 Denver-area mortgage brokers or lenders.

Once you apply for your home loan, by law, your mortgage company or lender needs to provide a good faith estimate within three business days. And, your final closing costs need to closely match your good faith estimate – no surprises. These protections for buyers were put in place after the Great Recession, which was caused, in large part, by mortgage fraud.

For more information about closing costs, or for a referral of mortgage brokers we trust, please call us at (303) 222-0027, or e-mail contact@firsttimehomebuyersdenverco.com.

Note: If you choose to work with us, we can be your real estate buyer’s agent. And as a buyer’s agent, we won’t charge our commission to you – the seller takes on that responsibility.