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  • Casual Articles - Home Loan Closing Costs May Be Surprising

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    n dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't fo

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    The whole purpose of taking out a mortgage is to borrow the bulk of the purchase price of a house. Most houses sell for prices that are well beyond the amounts the people keep in their bank accounts, so taking out a loan to buy a home is pretty much inevitable. And yet many homebuyers are astonished to discover just how much cash they are required to bring with them when it comes time to close on the loan.

    It does seem rather counterintuitive that one would have to bring cash to a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't for

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    e people keep in their bank accounts, so taking out a loan to buy a home is pretty much inevitable. And yet many homebuyers are astonished to discover just how much cash they are required to bring with them when it comes time to close on the loan.

    It does seem rather counterintuitive that one would have to bring cash to a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't fo

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    h cash they are required to bring with them when it comes time to close on the loan.

    It does seem rather counterintuitive that one would have to bring cash to a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't fo

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    a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't fo

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    n dictates that those costs be paid when the loan is signed.

    If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't forget to bring a cashier's check for $15,000" can be pretty shocking. Here is a short list of things a buyer may be expected to pay, in cash, when closing a loan:

  • The down payment – This is the portion of the price of the house not covered by the loan. In years past, this figure might have been 20% of the purchase price or more. Now, in some cases, there may be no down payment at all.
  • Loan origination fee – The fee that the lender charges to create and process the loan. This fee is typically about 1% of the loan amount.
  • Appraisal fee – The fee charged to assess whether or not the house is worth the seller's ask

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