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Writer's pictureJoanna Carranza

Closing costs to Prepare for when Buying a home

Updated: May 17

Typically closing costs ranges from 2% to 5% of the loan amount. Closing costs like its name states are incurred during the closing.


Loan origination fee

The lender charges this fee for processing a new loan application. This includes application fees, underwriting fees and more.

Closing costs to prepare for when buying a home

Appraisal fees

This fee covers an a professional appraiser to determine the value of a property as required by the lender. The lender chooses the appraiser.


Mortgage insurance premium

Mortgage loan insurance is required with FHA loans. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a down payment lower than 20%.


Discount Points

This is the fee as a borrower you can pay to the lender to reduce your interest rate.


Home inspection is an assessment on the property based on the structural aspects of the home, heating and cooling systems, plumbing, electrical work, water and sewage to ensure they are all functioning properly. The home inspector will also assess for fire and safety issues, damages and anything else that can affect the value of the home you are purchasing


Escrow Fee

The escrow fee will depend on the escrow company you are using and the amount of the amount of the property you want to purchase.


Property Tax

The tax rate for Guam is around 0.7% of the assessed value of the property.


Deed recording to shift ownership from the seller to the buyer and recorded in Guam public records


Title insurance policy protects the policy holder from losses resulting from the defects in the title and even disputes on property ownership, boundaries, or undiscovered liens.


Titles search

As part of the closing process, a title company will conduct a title search on your house, identifying outstanding liens and other issues that could complicate the transfer. The title or deed to a home may contain inaccuracies (or even forgeries!) that need to be addressed before it can change hands.


Property survey determines or confirms boundary lines and legal descriptions of the property you are purchasing.


Notary fees


Home Warranty a service contract that covers a major housing system–for example, plumbing or electrical wiring–for a set period of time or covers the repair and replacement of major appliances and systems in your home.


Homeowner’s insurance

When financing a home purchase, mortgage lenders require proof of purchased homeowners insurance. Insurance providers consider many factors when pricing a homeowners insurance policy — the location, flood zones, cost to rebuild and so on. If you are buying a home with cash, homeowners insurance isn't required but is still recommended.


Happy house haunting on Guam and I look forward to working with you!

Email me at carranzajoanna2@gmail.com or whatsapp/text/call me at 671-747-0599


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