What to expect for closing costs

Closing on a property is a very challenging time for a would-be homeowner. Being informed, through both your BMS mortgage broker and your real estate agent is the best thing you can be when going through this procedure.

Closing costs on average are from 2% to 3% of your loan amount, and the exact amount will be told to you shortly before the closing. All closing costs are to be paid at the settlement of the mortgage loan by the closing or attorney, or settlement agent. Your BMS loan officer can supply you with a Good Faith Estimate (GFE) which lists an estimate of the costs associated with your loan.

There are two types of closing costs

• Non-recurring closing costs are the ones that you pay once and never have to pay again.
• Recurring closing costs continue throughout home ownership.  Items include real estate property taxes, hazzard or homeowner's insurance and condo/association dues.

The following is a listing of items that MAY be part of yourmay be on your GFE.

Loan Origination Fee
Loan Discount fee
Loan Application fee
Appraisal fee
Credit Report

Courier or overnight fee
Lender’s Inspection fee
Mortgage Broker commission or fee
Tax service fee
Processing fee
Underwriting fee
Wire transfer fee
Interest from the day of settlement to the date of the first mortgage payment or "pre-paid interest"
Private Mortgage Insurance (PMI)
Hazard Insurance premiums or "reserves"
Property taxes from the day of settlement to the end of the tax year or "reserves"
Attorney Fee
Notary fee
Title search

Lender's title insurance 
Owner's title insurance
Recording fees
Tax stamps
Pest inspection

Knowing what to expect for closing costs will eliminate sticker shock come closing day.  When evaluating programs from different lenders, always consider not only the interest rate, but also the closing costs listed above.  

Please contact your Boston Mortgage Solutions loan officer for more information on any of the closing costs or your particular Good Faith Estimate.