We're at the tail end of buying our first home and all of the sudden we feel very confused.

Asked by Lauren, philly Sat May 31, 2008

The realtor seems like she's just trying to get it over with and all of these little "fees" keep popping up and we're worried we won't have enough money once settlement comes. So basically I'm wondering if it's normal to have to send the down payment through certified mail 3 weeks before closing? We're also wondering if Hazard Insurance is the same thing as Home-Owners if anyone feels like answering that... Thanks in advance

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jfeld, , Philadelphia, PA
Sun Jan 12, 2014
Have you considered a sellers assist, to pay for all of your closing costs, other than down money needed? Hazard and homeowners are one in the same

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Edmund Choi, Agent, Paoli, PA
Mon Jun 2, 2008

Congratulations on taking the steps to becoming a new homeowner! Regarding the "down payment" which will be added to an escrow account for your transaction, refer to line 18 of the Agreement of sale. It is commonplace that certified funds must be submitted because it is important that the money clears in time for settlement and a certified check removes uncertainty. Regarding hazard insurance, it is the same thing as homeowners. Bottomline, you need to have in place by time of final settlement insurance coverage that protects the property in case of fire, wind damage, etc.

Furthermore, you should have received at time of preparing your offer an estimate of closing costs, outlining all the fees that you should be expected to pay. Some of these items may have been estimates, but all fees should have been disclosed. Upon execution of your Agreement by the Seller, you should have received another estimate of closing costs, reflecting any changes that may have occurred during the negotiations of your offer.

Finally, you can ask your mortgage provider to provide you with a Good Faith Estimate, once again outlining all the costs associated with the transaction. You will receive a more accurate estimate the day before closing.
Web Reference:  http://PhillyandBeyond.com
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Chris and St…, Agent, Philadelphia, PA
Sat May 31, 2008

Buying a home (especially for the first time) can be very exciting, but it also comes with a lot of stress and anxiety. I would request a meeting with your realtor and/or mortgage broker (or both) to go over the whole closing costs again with you, how much is your down-payment, your closing costs and so forth. You can bring a list of all your questions and Im sure they would all get answered.

Home owners insurance and hazard insurance are the same things. There is a lot of closing costs that a buyer has to incur, but not for nothing, they are typically the same as every buyer. Typically the only difference would be your mortgage closing costs versus what a different bank would have. Most everything else is regulated and would have to be disclosed.

Also, having to make your escrow deposit in certfied funds is common if you are making a deposit within 30 days of settlement. The money is still your money of course and will be brought to the settlement on your behalf.

Good luck and hang in there !

For more helpful hints, visit our website below:
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0 votes
Frank Diaz, Agent, Honolulu, HI
Sat May 31, 2008
You should have received a Good Faith Estimate from the lender when you qualified for the loan. That is a rough estimate of how much the loan costs will be at closing.

You should also received an estimated HUD-1 from the title company, that breaks out a best estimate of your closing costs with a final estimated amount that you should pay. I agree, there are a lot of little fees there. If you don't agree with them or don't what they are for, you should question them. It's your money.
0 votes
George Slawt…, Agent, Philadelphia, PA
Sat May 31, 2008
Hazard Insurance & Home Owners Insurance are the same thing. As for the certified mail, I'm not sure why you would have to do that. You do have to use certified or cashiers funds with an agreement of sale that is within 30 days of settlement. Maybe this is what you're referring to? Any fees should be discussed at the time of signing the agreement of sale, the form we use is know as the estimate of buyers closing costs. This way there are no surprises when little fees may arise. You may call me at 215-676-0863 if you'd like to talk about your situation. Take care and God bless.
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