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Real Estate Closing Costs

Down Payment Most lenders require at least 10% of the purchase price, though new programs are available for 3%-5% down. 100% financing can be found, but you credit must be excellent and PMI insurance will be required. Loan Origination Fee A lender’s fee for establishing a new loan. Government regulations allow only 1% origination fee on FHA or VA loans. Conventional loan fees can vary from -1 to 3+ points, plus other costs. A point is 1% of the loan….

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Real Estate Escrow Accounts

What is Escrow? Escrow is the depositing of funds and documents by the parties to a transaction with an impartial or neutral third party. It takes orders from sellers, buyers, lenders, inspectors and others setting out the terms and conditions under which further delivery is to be made. Many escrows are done through title companies which provide reports and title insurance. Escrow enables the parties in a real estate transaction to reduce the risk. The Escrow Holder Acts as: A…

Posted in Real Estate