If you would like to calculate your approximate monthly mortgage payment, we provide plenty of Mortgage Calculators for calculating your monthly mortgage payment, income tax savings, rent versus own analysis, and many other useful mortgage calculators. If you prefer to have us walk you thru your specific mortgage calculations, give us a call now, and we will walk you thru the figures. (480) 424-7144
What Are The Closing Costs?
Mortgage Closing Costs are added to your down payment, and your mortgage escrow account, to determine your Total Cash Required To Close. The Property Seller will also pay separate title insurance and escrow fees. But Home Buyers are responsible for most of the closing costs related to Buying a Home in Arizona.
Following is a list of Closing Costs typically paid by an AZ Homebuyer. These Buyer costs can also be paid by the Home Seller, but "Seller Paid Buyer Costs," will need to be negotiated in writing thru your Arizona Residential Real Estate Contract. Note, some Buyer Paid Closing Costs can also be paid by the Lender. Give us a call now to discuss Lender Paid Closing Costs. (480) 424-7144
Bank Closing Costs
- Appraisal Report - Typically $470 to $750 depending on the loan program and price of your home
- Credit Report - $39 per borrower for a 3 bureau scored credit report. Additional fees may apply when supplementing the original credit report with a landlord reference, updated mortgage rating, or adverse credit accounts that have been recently paid off.
- Flood Certification Fee - $15 is a 3rd party fee charged to verify if property is located in a flood zone
- Tax Service Fee - $45 is a 3rd party fee required to obtain tax transcripts from the IRS, and administer property tax payments over the term of the loan.
- Underwriting Fee - $899 is a typical underwriting fee charged by a bank for underwriting your loan
- Processing / Administrative Fees - $45 is a cover all fee banks charge to cover misc. administrative expenses incurred while processing your loan.
Title & Escrow Company Costs
- Title Insurance - Title company fees vary by Title Company, Property Type, and Loan Amount. Title Companies file their fee schedule with the State of Arizona thru AZDFI. Title Insurance charges typically cost from $699 to $1,250.
- Escrow Fees - Escrow fees are typically split between the home buyer and home seller, and cost $375 to $1,050 based on the purchase price and loan amount. Ask about potential discounts available.
- Recording Fees - Recording fees of $34, are charged by a Title Company for recording your mortgage Deed of Trust at the County Recorder's Office.
- Title Endorsements Fees (EPA, ARM, PUD, CONDO) - Title companies charge endorsement fees for adding additional title insurance coverage to their standard coverage. These endorsements range from $25 to $75 per endorsement, and help to reduce the additional risk.
- Courier or Overnight Delivery Fees - Courier fees of $35 are often charged by a Title Company for transporting loan documents from their office to the signing, and then back to their office. These fees also cover any payoffs that might be required.
- Closing Protection Letter (CPL) - Lenders usually require Title Companies to provide a $25 CPL fee to indemnify the lender from potential losses associated with certain types of closing agent misconduct.
What's Is An Escrow Account?
Most Arizona Mortgage Loans Require An Escrow Account Property Taxes, Homeowner's Insurance and Flood Insurance, if required. The escrow account also includes prorated interest from the day you close escrow, until the end of the month. For example, if you close on the 20th of the month, there will be 10 or 11 days of prorated interest due. If you close on the 10th of the month, there will be 20 or 21 days of prorated interest due except if your closing date is in the month of February.
An escrow account is setup by a mortgage lender to ensure your property taxes and homeowner's insurance are paid when due. Following is an example of escrow charges that will be collected by your Title Company's Escrow Officer, when you close your purchase or refinance loan in Arizona:
- Homeowner's Insurance Policy - You will select and negotiate with the homeowner's insurance company who will insure your property should damage occur. Hazard Insurance policies typically cost between $750 to $1,200 per year. You will be required to pay for your 12 month insurance policy at closing, plus two months' insurance will be collected for your escrow account. Then you will pay 1/12th of the cost of your annual homeowners insurance bill, as part of your monthly mortgage payment. That way you will have 12 months of homeowner's insurance plus a 2 month cushion when your insurance is due 12 months after you close on your new home.
- Property Taxes - Property taxes are also collected and placed in your escrow account, when you buy a home in Arizona. Lenders will collect the the equivalent of 3 to 4 months of property taxes, so that your escrow account will have the 6 months property taxes, plus a two month cushion, each time your semi-annual property tax bill becomes due. To review a specific semi-annual property tax bill, visit the County Recorders Office online, or in person.
- Aggregate Adjustment - There is also a small aggregate adjustment that is calculated by the bank computer system. The aggregate is a small credit that will be subtracted from your total escrow account due, based on the congressional legislation.
What's The Next Step
Pick up the phone and call Arizona Central Mortgage Now (480) 424-7144. One of our mortgage specialists will help you determine which home loan is best for you. You will be asked a series of brief diagnostic questions about your debt, credit income and savings, that will determine what mortgage options will help you to best Accomplish Your AZ Home Buying Needs. Then you will receive a mortgage prequalification letter that will strengthen your home-buyer negotiating position, when purchasing Your AZ Home.
If you are already shopping for an AZ Home, we can assist you with a Fast, Automated Preliminary Mortgage Approval for a Conventional, FHA, or VA Home Loan. The preliminary mortgage approval process typically requires the following supporting financial documents:
1. 30 days recent consecutive Pay Stubs
2. 2017 & 2016 W2's, 1099's, or K1's
3. 2 most recent consecutive Bank Statements all pages
4. 1 quarterly retirement or Investment Account Statement if applicable
5. Current Awards Letter if using social security or disability income
6. Tax Returns w/ all schedules, if using self employment or Commission income
7. $39.00 credit card authorization for 3 bureau scored mortgage Credit Report
We will then run your preliminary mortgage approval thru our FNMA, FHLMC, FHA or VA automated underwriting engine, which will take 24 hours or less to complete, from the time you provide your financial documentation. Then you will receive your written preliminary Mortgage Loan Approval Letter, or we will call you to review additional items required to procure your Preliminary Mortgage Approval.
Once you have an approved Home Purchase Contract, we will update your loan application and miscellaneous disclosure forms, and quickly move your file to underwriting, for your complete underwritten mortgage approval. At that point, the underwriter will likely have a couple of questions and/or additional requests. We will work with you closely throughout the Mortgage Approval Process, to ensure Your Home Loan is Approved quickly and efficiently.
Why Arizona Central Mortgage?
- Low Mortgage Rates
- Low & No Cost Home Loans
- Fast Loan Approvals
- Flexible Mortgage Loans
- We Go The Extra Mile For You
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