To improve your experience with us, select your city below:

No, thank you.

Take Me to The Site

Home Mortgage Aside Include

An End and a Beginning

While closing is the last step in your home buying process, it’s just the beginning of the new chapter of your life! It’s an exciting time – but it’s important to remain focused. Closing is when all the paperwork comes together. You’ll be signing on a lot of dotted lines, a lot of money will change hands and you’ll get the keys to your new house!

After signing all the closing documents, you’re officially responsible for your new home and mortgage. Your Five Points Bank mortgage loan specialist will be right there with you to explain all the paperwork, but here’s a few things to expect.

contact us

Loan-Related Closing Costs

Loan Origination Fee

This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.

Points (optional)

An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals one percent of the mortgage amount. For example: on a $150,000 loan, one point would equal $1,500.

Appraisal Fee

The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report

The lender uses a credit report to determine the creditworthiness of the loan applicant. This fee is often paid when the loan application is submitted.

Interest Payment

Typically, the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account

At closing it may be required that an escrow account is set up for next year’s home insurance and/or taxes when they come due.

learn more about escrow

Go to Top