Q. What services will I be paying for when I pay closing costs?

A. You will usually be paying for such things as real estate commissions, appraisal fees, escrow charges, advance payments such as property taxes and homeowner's insurance, title insurance premiums, pest inspections etc.

Q. How much should I expect to pay in closing costs?

A. The amount you pay for closing costs will vary. However, when buying your home and obtaining a new loan, an estimate of your closing costs will be provided to you pursuant to the Real Estate Settlement Procedures Act after you submit your loan application. This disclosure provides you with a good faith estimate of what your closing costs will be in the real estate process. An itemized list of charges will be prepared when you close your transaction and take title to your new property.

Q. Can I pay for my closing cost in installments?

A. No, and it is easy to understand why. Many different parties will have fulfilled their responsibilities and will await payment upon closing. The title or escrow company will disburse monies to those parties, pursuant to the escrow instructions, when funds are available.

Q. Will I be allowed to write a personal check to cover my closing costs?

A. Your closing funds should be in the form of a cashier's check, issued by an institution in the state you are doing the transaction, made payable to the title company or escrow office in the amount requested. A personal check may delay the closing or may be unacceptable to the title or escrow company. An out-of-state check could also cause a delay in the closing due to possible delays in clearing the check.

Q. Who can I look to for straight answers on closing and closing costs?

A. Title or escrow company personnel are available to review and explain your title policy and your closing statement. Remember, the title or escrow officer cannot give you legal or tax advice. It is their responsibility to give impartial service to all customers.