Estimating Your Closing Costs
Closing costs typically are about 3-5% of your new home’s purchase price. This amount may vary, however, based on your home’s location, cost and other factors. Lenders are required to provide a Loan Estimate, which includes information about closing costs, within three days after you apply for a loan. Remember—this is just an estimate.
Just Say No to Mortgage Junk Fees
Finding the right home can be a long but satisfying journey, and nothing can put a damper on a dream home closing quite like extravagant closing costs. It’s normal to pay closing costs when you finalize a mortgage, but those fees may require a second look. Some unscrupulous lenders try to pad your closing costs with unnecessary charges as a way of increasing their return also known as mortgage junk fees. As a not-for-profit credit union, TEG will never increase your closing costs with unnecessary charges.
You can save a lot of money when you compare our closing costs to other lenders. TEG has:
- No Application Fee
- No Underwriting Fee
- No Mortgage Rate Lock Fee
- No Processing Fee
- No Administrative Fee
- No Wire Transfer Fee
- No Commitment Fee
- No Origination Fee
On the day you close the deal on your home purchase, you’ll be required to sign legal documents, known as closing documents, which will finalize your mortgage and establish you as the home’s new owner. You must acknowledge receipt of their initial Closing Disclosure at least 3 business days before consummation. You will need to sign all Closing Documents and final CD at closing. Your Closing Disclosure (formerly HUD-1 Settlement Statement) sums up the terms of your loan and what you pay at closing.
- Key sections to review include:
- Loan terms and projected payments
- Loan Costs: such as points, appraisal fees, and title fees for transferring ownership of the home to your name.
- Other Costs: Certain expenses, such as homeowners insurance, property taxes and escrow funds need to be paid prior to closing on your home.
- Calculating cash to close
- Summaries of transactions
- Loan disclosures