Closing Costs and Down Payment
How do I know how much money I will need to close on the first mortgage loan?
When purchasing a home, you will need enough funds to cover closing costs, down payment, earnest money, and an application deposit.
When refinancing your home, in most cases, closing cost can be financed in your new home loan. You will need enough funds to cover the application deposit amount.
Whether you are purchasing or refinancing, it may be necessary to have enough funds reserved to cover a specific number of future mortgage payments to qualify.
What are closing costs?
Closing Costs are the combined amount of various fees charged throughout the loan closing process. These are some common fees that will make up the closing costs:
- Origination Fees
- Appraisal Fees
- Credit Reports and Third-Party Verification Fees
- Title Company and Settlement Charges
- Pre-Paid Items and Escrow Deposits (cost of Homeowners Insurance, Property Taxes, and FHA Upfront Mortgage Insurance Premiums)
How much are closing costs?
Because the closing costs can vary based upon many things including loan amount and third-party fees, it’s hard to determine the exact amount! After you apply, we can provide general fee information.
Once a property has been determined, you will receive a loan estimate that includes cost estimates, a list of fees you can shop for, and a provider list that has the companies we used to quote the cost.
When do I pay closing costs?
Most closing costs are due at closing, but some costs may be required when incurred.
An application deposit of $500 will be due to Carrollton Bank once a property address has been identified and you give your intent to proceed.
- When your loan closes, the $500 will be credited to your closing costs.
- If your loan does not close, you will receive a refund from Carrollton Bank within 30 days for any amount of the deposit not used to cover incurred third-party expenses.
If the application deposit is not collected when due, it could delay the processing of your mortgage.
How much will my down payment be?
The required minimum down payment is based upon a percentage of the purchase price and can vary by loan program. See our Programs Offered page for more details.
- FHA: 3.50%
- Conventional: 3-5%
- VA: 0%, subject to VA eligibility
- USDA: Possibly 0%, subject to USDA property eligibility
- Affordable Seconds Home Loan: 0%
Do you offer down payment assistance?
Yes! We work with several nonprofits and local government agencies that provide programs to assist qualified homebuyers with down payment and closing costs.
We also offer the Affordable Seconds home loan that allows up to 100% financing to cover the required down payment with a second mortgage loan.
How do I know if I qualify for down payment assistance?
Down payment assistance may be available whether you are a first-time home-buyer or if you have previously purchased a home.
Each pre-qualified applicant is reviewed for down payment assistance eligibility.
Here are some common guidelines for down payment assistance eligibility, although the requirements can vary subject to the agency’s qualifications:
- Household income does not exceed HUD income limits for St. Louis Metropolitan Area.
- Borrower must have the minimum $1,000 contribution.
- Completion of the required program, education and counseling requirements for the specific program.