12 Questions To Ask Yourself Before Taking On A Loan

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What other costs are associated with this loan?

When we were buying our home, all we thought about was scrounging up the down payment cash. So we were surprised when the cash-to-close statement came in and it was about $7,000 more than the down payment. But then there was the appraisal fee. The tile recording fee. The notary fees. The application fee. The office administration fee. The entire year’s home insurance premium paid upfront. Apparently, we had to buy down the rate with points to get the rate we got in order to make the monthly payments work. This is just our experience with a home loan, but you can find the same with a car loan, a student loan, a personal loan, or really any type of loan. Always ask, “What’s the estimated cash-to-close?” That will give you a better look at how much you have to fork over before this loan is a done deal.