Estimates
Given all the possible feesyou might have to pay and the wide range in prices, it’s not surprising that it’s impossible to predict exactly what amount you’ll need to bring from the bank on closing day.
But along the way, there are several opportunities to get some ballpark estimates of how much you’ll need to save:
-
Closing Cost Calculators: there are several calculators available online which can help you plan
-
Real Estate Agent: a good agent should be able to give you some broad estimates of what fees apply in the area you’re interested in, and who traditionally pays what fees
-
Good Faith Estimate: when you apply for a loan, the lender is required to give you a “best estimate” of the costs of the loan (including some closing costs) within 3 days
-
Closing/Settlement Statement: often the escrow/settlement agent or title company will draw up a preliminary settlement statement in the days before the closing. It can be useful if you or your real estate agent can review this version, since it is all too common that last minute mistakes and omissions hold up the final closing.
-
Phone Call: often, the closing agent is drawing up the final version of the documents only hours before the appointment. This means you and/or your agent will get a call just ahead of time with the final amount, so you can then go to the bank and get a certified check.
And remember to check the final statement over very, very carefully. With so many people involved in the processing of so many similar real estate deals, there is a lot of room for mistakes and miscommunication.
You don’t want to find yourself with all of your furniture in a moving truck and no where to go because the closing has been delayed due to a problem with the flood certification.
Print this Page