Closing costs and the process of closing are the final moments before your mortgage, title, and ownership are signed off on and become your responsibility. This can be nerve-racking and overwhelming, so let’s do our best to take the guesswork out of it.
Throughout the process of purchasing your mobile home, you’ve probably had an idea of what you’ll be paying in closing costs, but here we uncover the details. We’ll also go through what to expect during your closing.
Usually closing costs are typically about 2% – 6% of the purchase price, but this amount can vary. These costs pay for things like documentation, labor, and legal representation during the closing for the home. These costs reflect a combination of many smaller costs that equal the final payment.
The buyer can go through closing without contributing to the cost by either: asking the seller for part or all the closing cost (depending on the loan agreement), or closing costs can be included in the financing.
Here are some examples of things that may be included in closing costs:
- Document prep
- Recording fee
- Flood certificate
- Survey Fee
- Deed Stamps
- Title Fee
- Owners Title Insurance
- Application fee
- Assumption fee
- Attorney fee
- Prepaid interest
- Loan origination fee
- Mortgage broker fee
- Mortgage insurance app fee
- Upfront mortgage insurance
- Applicable loan fees
- Inspection (if buyer chooses)
- Possible HOA
- Homeowners insurance premium
- Property taxes
- Title search
- Title insurance
This is not an all-inclusive list and it will depend on the lender and your specific situation as to what costs you have to pay. Closing costs can really be a burden to the buyer if you don’t save and plan ahead.
The Process –
Before closing, you’ll schedule a walk-through to ensure all items were taken care of that the seller promised to address.
The actual closing process involves paying those final fees and signing a lot of paperwork. You’ll accept your loan, your title company will prepare documents, and transfer money for you.
More than likely you’ll be offered electronic signing. It may be difficult to review documents on a cell phone, so it would be best to review on a tablet or computer. Consider printing the documents for easy review, as well as writing down any specific questions you may have.
Also, remember that there are aspects of your closing costs that you can shop for. Feel free to ask questions, research, and find the best deal instead of taking what you’re presented with. When you don’t know what certain things mean it can feel frustrating to have to ask, but you should. Accepting what you don’t understand is not going to help you.
We wish you a smooth closing with plenty of explanation!