Lending with Mike Poyntz

Finalizing the Purchase of Your Home: Paying Closing Costs

Finalizing the Purchase of Your Home: Paying Closing Costs

Whether you are purchasing a new home or refinancing a current mortgage, you will need to pay for closing costs in order to obtain a loan and finalize the purchase. This is the final step to owning your own home, and basically accounts for any fees associated with the home loan excluding the price of the property itself. If you are interested in buying a new home or refinancing your mortgage in San Luis Obispo, California, and have questions about the fees you will be responsible for paying when owning a home, Mike Poyntz – Motif Mortgage can help. Read on to learn more about closing costs and how they are factored into a home purchase.
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Closing Costs – General Information

New Home RunningEssentially, closing costs consist of the additional fees you are required to pay during the purchase of a home that do not include the down payment or cost of the mortgage. They usually end up costing 2% to 5% of the purchase price of the property. Closing costs are due at the end of a home sale when the title of the property is transferred from the seller to the new buyer. The total amount for closing costs will vary depending on certain factors such as the type of loan you qualify for, the location you buy the home in, and the kind of home you purchase. Sometimes, a mortgage broker may be able to negotiate with the seller to either factor closing costs into monthly loan payments or to decrease the price of closing costs.

The Fees Associated With Closing Costs

There are several different fees that are associated with closing costs, including:

  • Loan application fee – the fee charged by a lender to submit and underwrite the loan request and accounts for other administrative costs such as a credit report check, etc.
  • Origination fee – the fee you must pay for a lender to set up and execute the loan
  • Title search fee – a fee that ensures that there are no lien issues associated with the property and that the seller truly owns the home
  • Title insurance fee – fee that protects the borrower against another party claiming ownership of the home
  • Home appraisal fee – a borrower will be required to pay for a home appraisal in order to determine the home’s value
  • Taxes – A borrower will be required to pay taxes on the transfer of the title, in addition to property taxes

Assistance With Understanding Closing Costs

Buying a home or refinancing a current mortgage can be an exciting milestone, but it is one that comes with significant financial obligations. If you are interested in buying a home or refinancing a mortgage in San Luis Obispo, California, and want to better understand closing costs, contact Mike Poyntz – Motif Mortgage today for a consultation.
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NMLS #1246224

Equal Housing Lender


Mike Poyntz - Motif Mortgage

San Luis Obispo Office:
735 Tank Farm Rd
Suite 210
San Luis Obispo, CA 93401

Paso Robles Office:
725 Creston Rd
Suite A
Paso Robles, CA 93446