RE/MAX New Beginnings

What are Closing Costs ?

Closing costs are a combination of items which must be paid to others in order to process your home loan and to facilitate the transaction and recording of the Deed.

They include all or some of the following.

Mortgage Lender: Loan origination costs.

Title Company: Title Insurance, Title search and fees to close.

State & Local Transfer Taxes and Document fees.

Yearly Property Taxes

Homeowners Insurance

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.

Title Insurance and Reports: 
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.  

A preliminary title report provides you with an opportunity to review any impediment that would prevent clear title from passing to you.  When reading a preliminary report, it is important to check the extent of your ownership rights or interest. The most common form of interest is "fee simple" which is the highest type of interest an owner can have in land.  

Some properties have a Ground Rent at a nominal cost per year to the ground owner. 

In Maryland, Buyers have the absolute right to purchase their ground from the ground lease owner and may do so at the closing of the property or at anytime after the closing. If purchased at the closing, this cost is in additional to the loan and not included in the loan. Which would be an additional item listed in the closing costs at settlement.

You as a Buyer, may ask any Seller for help with your closing costs. Known as Seller Subsidy or Closing Help. You should ask your RE/MAX Realtor, who is trained to represent your best interests, how this applies to your purchase and will help you to reduce your out of pocket costs for purchase.