How do I determine the amount of money needed for settlement?

  • The amount of money needed for settlement typically depends on multiple factors. There are 3 categories of items that make up the amount required that you will need to bring to closing on the settlement day of your home purchase.
 
  • 1) Earnest Money Deposit ( EMD) When you make an offer on a house, the deposit that is supplied is commonly referred to as an earnest money deposit. ( Usually equal to 1% of the purchase price of the home)
 
  • 2) Closing CostsClosing costs are the fees associated with processing, underwriting and closing paperwork  required for a refinance or purchase loan. They include: title costs, lender or broker fees, appraisal fees, home inspections, recording fees, transfer taxes , up front mortgage insurance premiums, credit reports and other costs a third party vendor may charge.
  •  3) Down Payment The required money due at settlement as a percentage of the purchase price of the home and loan product chosen.
 
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