Document preparation - The closing agent prepares the documents required for your closing shortly after you sign your contract or loan application. The agent will request the payoff information of any existing mortgages, as well as a request for any information regarding homeowners or condominium association dues and/or transfer fees. If a new mortgage is being obtained, the closing agent will work closely with your lender to make sure you meet all of the lender's closing requirements. Title … [Read more...]
What are Closing Costs?
Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days … [Read more...]