What are closing costs?
Closing costs are the expenses incurred by buyers and sellers for the services of various real estate and lending related professionals when transferring ownership of a property. These expenses normally include an origination fee, property taxes, title insurance, escrow costs, appraisal fees, etc. Closing costs can be thousands of dollars and will vary depending on your lender, the mortgage you chose and the location of the home. You will get a better idea of the amount once you apply for a mortgage and receive a Loan Estimate (LE) that estimates the approximate costs you will owe on or before closing. You may even be able to include your closing costs with your loan amount to limit how much out-of pocket expenses you’ll need to close.
How much cash do I need to close?
The amount of cash needed to close is comprised of your down payment and closing costs, as well as the prepaid
items for your initial taxes and insurance escrow accounts. Within three days of receiving your application, you will
receive a LE which lists the estimated charges at closing. Right before closing, you will get a Closing Disclosure, which is an updated list that itemizes final closing costs.
Why wouldn’t I want to see my credit scores with the free credit reports?
The score you would see with your free report is not going to represent the same credit scoring that would be used for mortgage credit evaluation purposes.
Scoring is provided differently depending on who requests the report and for what purpose because risks are weighed differently depending upon whether the report has been obtained for credit card application, auto loan application, or mortgage application.