This is How to Understand Property Taxes Before You Buy via @homebidz

Here Are the Big Differences Between Preclosing & Closing Costs

Searching for a home is difficult enough without the added fact that you will have a lot to complete after choosing the right home. The pre-closing and closing process are very important so you need to make sure that you understand each step that is involved. 

Pre-Closing Costs

During pre-closing, if you have been pre-approved for a home loan, this is the time to contact your lender. You will need to let the lender know that you have found a home and that you have started on a contract with the seller. This is when they would finalize your loan and make it completely official.


Appraisals are a part of pre-closing and they will involve a thorough inspection of the home in order to find out the actual value of it. Usually the lender will provide an appraiser that you will need to use. This is not always the case and will depend on your particular situation.

Earnest Money

With pre-closing, there is sometimes a need for what is called earnest money. Basically, this is money that you, as the buyer, would put forth ahead of time in order to let the sellers know that you are truly serious about buying their home. This involves a certain percentage of the actual price and can differ depending on your individual situation.

Inspections are a part of both pre-closing and closing. This is the time in which you would have a home inspector perform the necessary inspections of the entire home. Any damages and repair work that is needed with be presented to both parties in detail. Rest assured that your real estate agent is aware of these things and should be able to help answer your questions throughout this process. In addition, you lender will be a great resource of information as you buy a new home.

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