You've found the perfect Edison real estate property and the mortgage loan with the best interest rate you can find in New Jersey.
What's next in the Edison home buying experience? Signing the contracts and paying the closing costs.
But what exactly are closing costs? Here is a list of some of the most common closing costs that may or may not apply:
• Survey Fee- This can be required by the lender. It is a fee for the survey of the land or lot, and its structures, to determine that it matches the property description.
• Mortgage Application Fees- Are occasionally included in closing costs, but usually are paid prior to closing by the buyer.
• Appraisal and Inspection Fees- Are required by the lender to ensure that the value of the property is equal to that of the loan, and to make sure there aren't any underlying problems that detract from the property value. These fees are usually paid by the buyer.
· Points- Equal to one percent of the principal of the loan. These discount points are paid by the buyer to the lender to reduce the final interest rate of the loan.
• Underwriting Fees- The buyer pays underwriting fees to the lender to pay for the costs of determining if the buyer qualifies for the mortgage loan.
· Property Tax- County taxes are usually required to be paid in advance at the time of closing. The buyer is responsible for these fees.