”What do closing costs consist of?”

Written by Ryan Morgan on . Posted in Your Questions

Question: “What do closing costs consist of?”    -Brandon | Duxbury, MA

Answer: Your closing costs are made up of several fees that are incurred in conjunction with your loan. Many are simple and self explanatory such as appraisal fee, credit report, underwriting fee, attorney’s fee while some are typically less well known such as title insurance, title exam, plot plan, municipal lien certificate. As compliance requirements increase, as well as verification requirements, many of these costs are included in your closing costs. You should always ask for a specific itemization of your closing costs in order to walk through them with your loan officer and fully understand what comprises them.

“Who do we use for homeowners insurance?”

Written by Ryan Morgan on . Posted in Your Questions

Question: “Who do we use for homeowners insurance?”    -Jackie | Braintree, MA

Answer: Your homeowners insurance policy and who you use is completely up to you, the borrower. Insurance companies have many different requirements and criteria when they come up with pricing your homeowners insurance policy.  You can expect to pay the first year’s premium up front, so you have effective coverage in place for the day you close. Going forward, that expense will be paid out of your escrow account any time a bill is due.

“How long does the closing process typically take?”

Written by Ryan Morgan on . Posted in Your Questions

Question: “How long does the closing process typically take?”    -Matt | Marshfield, MA

Answer: On average, most closings are approximately 45 days from the signing of the P&S until the close. In certain cases they can be as quick as 30 days or as long as 60 days. When considering the time frame, you should always communicate with your loan officer and realtor so the time frames can be properly managed.

”What comprises my escrow account?”

Written by Ryan Morgan on . Posted in Your Questions

Question: “What comprises my escrow account?”    -Sarah | Hanover, MA

Answer: Your escrow account is comprised of your real estate taxes, homeowners insurance, flood insurance, and when applicable your mortgage insurance.

Each month you pay 1/12th of your annual taxes and insurance into your escrow account. Your quarterly tax payment and annual insurance payment are then pulled from your escrow account so you do not have any surprises pop up. Because your taxes are paid quarterly, homeowners insurance annually and mortgage monthly, they are on slightly different cycles.

At closing, you should expect to fund your escrow account with 2 months of taxes and 2 months of insurance so there is a sufficient cushion. Whatever money goes into your escrow account is considered your money, should you refinance, sell or pay off the mortgage, that money is returned to you from the mortgage servicer.

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Phone: 781.982.3500
Fax: 781.982.3511
Email: pboretti@mortgagecorpeast.com

Mortgage Corp East
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800 Hingham Street Suite 104N
Rockland, MA 02370

 

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