Buyer Resources - Articles

Buying Your Home - Escrow & Closing Costs

How can I save on closing costs?
Studies show that the closing costs, which can average 3 to 4  percent of a total home purchase price, are often more costly than many buyers expect. But there are some ways to save:
* Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller.
* Get a no-point loan. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. But buyers who are short on cash and can qualify for a higher interest rate may find a no-point loan will significantly cut their closing costs.
* Get a no-fee loan. Usually, though, these fees are wrapped into a higher interest rate though it will save you on the amount of cash you need upfront.

*ALSO John Kneece has more than 1000 transactions completed and has discovered in that process sources for mortgage money which cost the buyer less than some other sources.

Who pays the closing costs?
Closing costs are either paid by the home seller or home buyer. It often depends on local custom and what the buyer or seller negotiates.

What are closing costs?
Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed.

Where do I get information about closing costs?
Since lending is best done on a local basis in my opinion you should begin by calling JOHN KNEECE so as to land in the right place for the best service and the least cost out of pocket. Even if the seller agrees through negotiation to pay closing costs it is still a good idea to keep them low as those costs, if absorbed by the seller, will be reflected in the eventual negotiated sales price.

Why do I need a title report?
Fact is the lender insists on the home you are buying to have marketable title. It protects their interests in the home and yours as well. As much as you as a buyer may want to believe that the home you have found is perfect, a clear title report ensures there are no liens placed against the prior owners or any documents that will restrict your use of the property.   The most common form of interest is "fee simple" or "fee," which is the highest type of interest an owner can have in land.  Liens, restrictions and interests of others excluded from title coverage will be listed numerically as exceptions in the report.  You also may have to consider interests of any third parties, such as easements granted by prior owners that limit use of the property. It is on the seller to clear the title of any issues that arise from a title search.