Buying a home in antelope Valley requires you to pay closing costs. Closing costs include many different expenses and fees, many of which, first-time homebuyers don’t know about.

Here is a short guide to closing costs so there won’t be any surprises.

CLOSING COSTS EXPLAINED
Buying a home can be exciting and confusing at the same time. A lot goes into the process, and there are many expenses first-time homebuyers may not be aware of. To ensure there are no surprises when you buy your first home, we’ve put together a short guide to closing costs.

Closing costs are fees and expenses you are required to pay when you purchase a home. These expenses include a laundry list of lender fees, insurance fees, and title fees, so keep reading to discover all the fees included in closing costs.

LENDER FEES
The lender fee list is the most extensive. Within a few days of receiving your application for a mortgage, your lender will present you with an estimate for the loan, which includes the closing costs associated with your loan. These costs include:

Loan origination fees – this is the fee for processing your loan

Discount points – this is optional and applies to buying an interest rate

Processing fees – this is another fee for processing your application

Appraisal review fee – this is the fee to pay for the appraisal

Credit report fee – pays for the obtaining of your credit report

Courier fees – this fee pays for the transport of your documents back and forth between the involved parties

Underwriting fee – this expense pays for the process of evaluating certain aspects of the transaction

Document preparation – fee to pay for preparing the legal documents required for closing
Wire transfer fee – the cost for wiring escrow funds

TITLE FEES
Recording fee – pays for recording the mortgage and deed at the courthouse
Notary fee – this fee pays for the required notarization of documents
Title insurance – ensures the title is clean and that there will be no contentions against you as the new owner of the house
Escrow fee – a fee paid to the escrow company or the attorney who attended the closing

INSURANCE FEES
Private mortgage insurance (PMI) – if your down payment was less than 20 percent, your lender may require you to have PMI, which will be included in your monthly mortgage payment
Homeowner’s insurance – required by lenders to protect your property from damage and theft
Flood insurance – if the home is located in a flood zone, your lender will require this insurance
The amount of each of these fees varies from lender to lender and state to state. You should contact your lender to discuss these fees, so you have an idea of how much you’ll need at closing. On occasion, the seller may pay the closing costs for you or the lender may opt to include the closing costs in your loan, but typically, the buyer is required to pay these costs at closing.

Buying a home can be confusing as it is exciting, but by understanding the guide above, you can feel more familiar with the closing costs associated with your home loan. 

Contact me at (661) 965-1122 if I can help you on the path to homeownership! 

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.