If you’re a first-time homebuyer, it can be a little unclear what exactly you’re paying for when it comes to closing costs. But don’t worry — our Home Guides are here to help. Here’s everything you need to know about closing costs and how Starlight Homes can even help you save money on them.
Understanding the Basics
First things first — what exactly are closing costs? These fees and expenses come with finalizing your home purchase. Think of them as the last thing you need to pay before you can turn your homeownership goals into reality. From lender fees to homeowners’ association dues, among other items, these costs are important to account for when shopping for a new home.
Breaking it Down
Not everyone pays the same types of closing costs, but there are a few common ones.
Regional influences affect closing costs, such as a flood certification fee if a lender must determine if the property is at risk of being in a flood zone. Recording fees come from recording a new deed with your public records office and vary depending on your local government. If you are financing your purchase, there can also be limitations on the number of seller-paid closing costs depending on the loan program you choose, so please check with your loan officer.
The Role of a Lender
Most closing costs come from services your lender provides. These include things like loan origination fees, which cover the costs of processing your loan application. Other administration expenses from evaluating, underwriting and approving your loan will also be included in your closing costs.
Your lender may also require that you include a portion of your property taxes and homeowner’s insurance in your monthly payment. Together, these are called escrow fees and can vary from year to year based on your home’s value and your policy’s renewal premium. At closing, your lender will require you to “fund” this escrow to protect their interests in your property and these fees will typically be called impounds on your Settlement Statement when you close.
Ultimately, these fees help a lender know that you’re well-prepared as you step into homeownership. Please contact your lender for details on what closing costs and prepaid fees your lender may require.
The Starlight Advantage Program
Closing costs can add up, and it’s important to budget for them, but buying a new home can still be affordable. When you purchase a home through the Starlight Advantage Program, we'll contribute a fixed amount of dollars toward your closing costs, subject to regulatory limitations based on your loan program. In some cases, using Starlight Homes’s affiliated lender means you might be eligible for a rate buy-down or other financing programs.
Start your life as a homeowner on the right foot by saving money on closing costs and set yourself up for success with a lower rate. Want to learn more about how Starlight can help? Contact one of our Home Guides and schedule an appointment today.
See Starlight Sales Representative for more information. See terms and conditions for complete information. For informational purposes only, not to be construed as quote or offer of credit. Starlight Homes is not a lender or mortgage broker. Programs, prices, rates, terms and conditions subject to change without notice. Actual rates may vary. Supply of homes and homesites at these prices are limited and subject to availability. All loans subject to credit approval. Other restrictions may apply.