With the decision to purchase or sell a home, one of the expenses that often gets overlooked is closing costs, which are the costs every real estate transaction incurs outside the price of the property to transfer the title from the old owner to the new. Both the buyer and seller pay closing costs. These fees typically run between 2%-6% of the purchase price and are due at closing.
As a buyer, your real estate agent may be able to help you negotiate with the seller to have them pay the closing costs. The seller's closing costs typically include the commission for the listing agent and selling agent, which ranges from 2%-6% of the purchase price of the home.
What exactly gets paid for at closing? Often included are fees for the appraisal, title searches and insurance, surveys, taxes, prepaid costs, mortgage insurance, and deed recording. If you are working with a lender, you may also be paying for loan origination fees, credit report charges, discount points, or application fees in the closing costs.
How will you know for sure what will be due at closing? All lenders are required by law to present a written estimate within three days of receiving a loan application, as well as disclose the actual closing costs at least three days prior to closing.
Interested in minimizing your closing costs? Stick around for the next blog post or contact Paul Herbert with any questions at 680-3333.