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LESSON 21: PREPARING FOR THE CLOSING
(continued from previous page)
2) Pay closing
costs and escrow
items: There are numerous fees associated with obtaining
a mortgage and transferring property ownership. Some borrowers roll
these into the principal
balances of their new loans or agree to pay higher interest
rates and have their lenders foot the bill. Other consumers
will have to pay them out of pocket.
We'll discuss these costs in more detail in the next
chapter. But if you're paying them at closing, now is the time to
sell investments or pool cash from savings and paychecks because
you'll soon be plunking down a big chunk of change.
 A
"no-cost" loan or refinance doesn't mean you'll not
pay any closing costs. It means no upfront costs.
TANSTAFL. (There ain't no such thing as a
free lunch.) You can pay the closing costs on the front end,
the back end, or throughout by paying a higher interest rate.
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It's a good
idea to have the home inspected after you agree on a price,
but before signing the contract and putting down a deposit.
If you're in a hurry to lock in the deal, make sure your
contract states that the purchase terms are conditioned
on the approval of a professional home
inspector.
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