Guide to Closing Costs

Congratulations on your decision to purchase a new home. For most homebuyers, selecting a Kentucky mortgage loan program and a lender are part of the home buying process. In order to find the loan package that best meets your needs, it is important to compare costs associated with different loan packages, including interest rates, items that are required to be paid in advance, and fees that may be charged to the homebuyer to handle the transaction. Your real estate agent can help guide you through this process, but the information provided here should be helpful in establishing reasonable or normal costs and charges for new home loans in the area.

In comparing loan possibilities, especially from one lender to another, it is important to look at the fees you will be charged. Any lender should give you a Good Faith Estimate of charges that you will pay at closing. The Good Faith Estimate is only an estimate and is not binding, but it should contain enough information for you to select the best loan package for your situation. If one estimate is for a lower rate than another, check to see if you are being asked to pay discount points, or higher fees. Typically, loan packages that offer very low or no closing costs have a higher interest rate. Loan packages with very low interest rates may have unusually high fees to the homebuyer at closing.

Regardless of the type of loan package that you are looking for, Walden Mortgage Group would welcome the opportunity to work with you in financing the purchase of your new home.

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