Staples Group Mortgage | St. George, Utah

Home Mortgage Utah

What Are Closing Costs?

If you’ve been interested in becoming a homeowner, you may be wondering what the different costs are and what they entail. Closing costs are a standard step in the home buying process! So it’s good to do your research and look up whats included, how to save, and why they are necessary. 

What are closing costs?

Mortgage closing costs are fees charged by the lender to the borrower, for services that were performed to close your loan. This is how we seal the deal and get ready to finally move you into your new home!

To avoid surprises, get a good idea from the start of what gets included in those costs and how much you’ll need to have ready. Many mortgage closing costs go to a third party for their services in helping close the transaction, and lenders usually have no control over these fees. 


What’s included in closing costs?

If you want to get a good idea of what home buyers typically spend on these closing costs, on average it comes to about 2-3% of the property price. Again, this is totally situational and prices vary from person to person. 

Some of these fees include:

Lender Fees: Here at Sun American we have some of the LOWEST lender fees in the Valley. These fees include a Documentation Prep Fee & an Underwriting Fee. This ranges anywhere from $1,000-$1,200 altogether. 

Title Company: A title company makes sure that the title to the home is legitimate. They issue title insurance for that property that protects the lender or owner against any claims against the property. To learn more about title companies and why they are a necessity in the home buying process, click here

ESCROW: When you close, you may be required to deposit money into an Escrow account for homeowners insurance, PMI Impound, and Property Tax Impound for example. 

There can also be some other 3rd Party and Appraisal Fees. The amount of fees and their prices all just depends on the property, which lender you choose, and some other factors. 

Saving tips, how to prepare for them!

It’s not like these costs will come as a shock or will hit you out of nowhere. From the beginning of the mortgage loan process, a Loan Officer is going to give you a Loan Estimate which gives you a good breakdown of the services, fees, and costs through this process. An estimate shows you your estimated interest rate, monthly payments, taxes, insurance, and closing costs. 

If paying for closing costs out of pocket is not something that you want to do, you are in luck! There are actually several really effective ways to take care of the closing costs that don’t involve your bank account. In fact most buyers never end up having to pay for them out of pocket! We suggest negotiating a closing cost concession from the seller in the purchase contract for all or at least most of the closing costs.

A seasoned real estate agent will be a great resource when it comes to this negotiation. They do it ALL the time! If for some reason the seller is unwilling or unable to provide the concession needed to cover the closing costs, Sun American can also provide lender credits to pay for them as well through some creative mortgage financing on most loan types. It’s super easy and it only has a minor impact on your final monthly payment. We’ll figure out something that will work for you!

Here at Sun American, we offer some of the BEST prices and rates in town. Our knowledgeable team has a great reputation going on 33 years of incredible service to our community and TONS of five star reviews to show for it. 

If you need some more explanations of fees in detail, checkout these websites to get a better idea!

Take the first step and start a QUICK Online Application, free & simple to use!

Or call one of our Loan Officers to learn about our loan programs, how to get started, and how much you qualify for 480-832-4343

What Are Closing Costs?
Article Name
What Are Closing Costs?
If you’ve been interested in becoming a homeowner, you may be wondering what the different costs are and what they entail. Closing costs are a standard step in the home buying process!
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Sun American Mortgage
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