Federal Title & Escrow Company - Closing Costs Explained Visually

Short Summary

Key Points

• Closing is the process of becoming the legal owner of a home, and it requires loan steps, legal steps, and title steps.
• Loan costs include the lender's loan fees and collected insurance, interest, and reserves.
• Legal costs involve the government recording the transfer of ownership in public records, and the government also takes a small fee.
• Title costs cover the title company's work of running a title search to confirm the seller has the right to sell, and buying title insurance to protect against claims that surface after the sale, such as missing liens, former spouses, or other ownership claims.

Details Worth Noting

• The title search looks for liens, former spouses, and other claims that could later threaten your ownership.
• Title insurance is the specific protection the video recommends to safeguard the investment against those later claims.

Bottom Line

Closing costs fall into loan, legal, and title categories, and a guaranteed title quote is the video's suggested way to plan and potentially lower them.