Costa Mesa Closing Costs: a Quick Rundown
Veteran Costa Mesa homebuyers won’t need to spend much time reading the following—they’re already familiar with the stack of documents that accompany a closing. At closing, they had only to sign on the dotted lines (they aren’t actually dotted—but never mind). By then, their Realtor® (ideally, that’s me) has acquainted them with the sheaf of papers they are finalizing—so the following details haven’t come as news.
Usually, the bulk of the paperwork deals with creating the home loan: the closing costs. These can be either mostly inconsequential or head-swiveling (what-th????). For anyone about to embark on a home purchase for the first time, here’s a quick rundown of the closing costs you may encounter. Your veteran real estate professional will provide more in-depth information, but here’s a quick rundown of the two flavors to expect:
Prepaid Costs
- real estate taxes
- insurance
- prepaid interest
- private mortgage interest
These deal with the charges that will be incurred at regular intervals throughout the term of the home loan. These will be prorated and included in the regular monthly payments, but at the opening bell, some are collected into a temporary pass-through account (the escrow account) which gets everything started.
Non-Recurring Costs
- Credit report – offsets the lender’s expense in compiling your credit history from the credit bureaus.
- Origination fee — covers the lender’s bill for creating the loan: an amount that can range from 1% to 5%, depending on the size and type of mortgage.
- Underwriting fees — pays the cost of evaluating and verifying the information on your loan application.
- Appraisal fee — pays the Appraiser’s fee for determining the property’s value.
- Survey fees — pays for the cost of verifying the property lines.
- Flood Zone certification fee — pays for verifying whether any portion of the underlying property lies in a declared flood zone area.
- Title search fee — pays for researching whether liens or unpaid mortgage payments exist on the property.
- Lender’s title insurance — insures the lender against losses due to possible ownership challenges.
- Recording fees — pays for government recording charges.
- Discount points — (optional) pays a lump sum (if chosen) that decreases the loan’s interest rate—and monthly payment amount.
There won’t be any surprises by signing time, not only because of the GFE (“Good Faith Estimate”)—but also because we’ll have gone over everything together long in advance. Questions? Call anytime!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com
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