Closing costs and timing shouldn’t be a surprise. We’ll discuss some of the most common costs here — but buyers should be aware that failing to close on time may come with extra expenses and added frustration.
Mr. Cooper helps take the uncertainty out of closing with our Close On Time Guarantee. We’ll close your loan on time, or your first month’s mortgage payment (principal + interest) is on us*.
The money you put in escrow each month is used to pay various taxes and insurance related to your property. You typically need to get your escrow account started with a two-month deposit up front. Not all loans require escrow accounts.
The cost for surveying to confirm dimensions and area of the property. The survey includes the width and depth of the lot. It also determines whether any other people or companies have easements to the property.
Private Mortgage Insurance protects the lender against default. It’s generally required when the down payment is less than 20%. It's usually included as part of the monthly payment, though in some cases you pay it upfront.
This protects the lender's financial interest in the property. The title to your home is protected in the event that disputes or claims arise after closing.
As a buyer, you only pay for the portion of the tax period that you own the home. So if your new loan starts December 1st, you'll owe for that month and the previous owner will pay eleven months' worth of taxes at closing.
The cost of having your new home inspected for pests, structural problems and other potential flaws that could impact the sale. Inspections can alert you to potential minor repairs as well as any major issues.