The Big Question is......
What Are Closing Costs?
Closing costs can sneak up on some people during a real estate transaction and become an unplanned fee.
This information can assist to ensure you are prepared and extra costs do no sneak up on you.
Closing costs are any fees that are associated with the closing of a real estate transaction, which is the transferring of the title from seller to buyer. These costs can be paid by the buyer, the seller, or a mixture of both.
If you have bought or sold real estate recently, you will know that most items and costs throughout the transaction are negotiable. Closing costs are no exception.
Closing costs can be a multitude of fees that can include:
-Fee for running credit report
-Lender Fees- costs for processing loan
Your lender is required to provide you with a Loan Estimate within 3 days of a completed loan application. Typically you can expect all closing costs to total out to be 2-5% of the purchase price. Keep in mind this is just an estimate. Costs can vary and the lender is permitted to adjust these costs. If necessary, up to 10% of the purchase price can be charged in the case of a circumstantial change.
The payment of these costs are completely negotiable between the seller and buyer. Typically the seller agrees to pay a portion of the closing costs to get a better total purchase price.
Be sure to do your research and know before you go to buy or sell a home that these costs exist and may come up.
If you are selling, or thinking about selling your home, here are some other blog topics you may be interested in.
Is it time for you to get Pre-approved for a mortgage?
If you are considering purchasing a home in the near future and are ready to start preparing for the pre-approval process fill out a pre-approval request form here.
When you are looking to purchase a home it is important to know the steps involved in the buying transaction. Take a look at this article on the 10 Important Steps to Buying A Home