A closing-costs checklist saves money & headaches

 

Part 2 of Condo Market affordable

 

HONOLULU ADVERTISER , July 10 2005

BY LISA SCONTRAS

Custom Publishing Group

 

This Sunday and next will feature a two-part series on closing costs.

 

Among the most stressful aspects of buying a home — if the search doesn’t stress you out enough — is facing the mountain of paperwork and loan documents. Of course, having a good Realtor by your side can really ease the pain of the administrative process. But what about the pain in your pocketbook? Nothing says “ouch” more than getting blind-sided with a mysterious bill for closing costs.

 

Closing costs are fees incurred by both buyer and seller in the legal transfer of property ownership. Fees are usually charged by the lender as well as the escrow company to coordinate the services provided by attorneys, appraisers, inspectors, Realtors, and other itemized taxes or products needed to make the sale legal.

 

A list of these fees with an estimated dollar amount is usually provided to the buyer and seller as part of the escrow process and further addressed during the loan application as the money required at closing is in addition to the down payment. But you can get them before that.

 

A thorough cost comparison of the lender’s fees is a good way to shop for a mortgage. Doing your homework may save you a substantial amount of money. Insist that perspective lenders provide you with a written Good Faith Estimate (HUD Form 1) that will spell out exactly what you can expect to pay for on closing day.

 

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