Closing Costs for Buying Homes in Maine
In addition to your downpayment, you will need to pay other miscellaneous expenses known as closing costs. These fees, adding up to an average of 3-5% of the amount of your loan, go to people involved with the sale of the home. Money goes to the title company, to a surveyor, to various government entities for filling out paperwork, and so on. Don’t let it catch you off guard. There is a definite chance that these settlement fees could add up to be over 5%.
Within 3 days of applying for a mortgage, your prospective lender is required by law to send you a Good Faith Estimate (GFE) of your closing costs. This is just an estimate, and it could be different than what you end up actually paying. The estimate will list all the fees they are charging you, so if you get an estimate from a few different lenders you can compare their costs.
Although some of the fees are fixed, some others may be negotiable. You may be able to avoid paying them or have the seller pay for them if you include this stipulation in your purchase offer. Even so, it’s wise to leave room for these costs when you set your budget for your down payment.
