Closing Terms You Need to Know

Real Estate

 

When you reach the closing part of the home buying process, you have to learn a number of different terms just like with earlier steps. These are a few of the terms that you will come across during this process so be sure you study them carefully.

Loan origination fees may confuse a lot of people. This term simply refers to the cost of the lender actually processing your application. It is a percentage of the overall mortgage amount.
Property surveys are a necessary part of the process. The fees associated with this will vary because it will depend on how extensive of a survey you want to be completed. These types of surveys can help in distinguishing the boundaries between properties.
Settlement costs are simple to understand. It is just another way of saying "closing costs" and can include fees like insurance, surveys, and agent fees. These costs will include what the buyer and seller will pay and it will be clearly explained in the closing documents.
State and local fees are other terms that you will need to be familiar with when it comes to the expenses. These are fees that can include your homeowner's insurance and property taxes.
This terminology is the standard for what you will hear and see during the closing process. It is better to walk into it knowing that you have a clear understanding of what you will be discussing.

If you aren't familiar with a term, don't be afraid or embarrassed. It's better to ask and learn more about the process than to maintain your silence. Your real estate agent, lender, or broker should be able to help you understand phrases and vocabulary that are unfamiliar to you. You also can learn a lot by just listening to them talk, as they use these phrases every day.