You’re almost through the entire home buying process! But, before the transaction can go through you need to agree on closing costs. Check out what you need to know about closing costs so that you can be better prepared to close the deal.
What do closing costs entail?
First and foremost, closing costs pay for anything that needs to be done to complete the sale of the home. They’re necessary to complete a real estate transaction between the buyer and the seller. These costs cover things like obtaining credit reports, legal fees, inspection costs, appraisal fees, title insurance, escrow deposits, and any other fees associated with the sale of a home.
How much can I expect to pay?
There is no set cost because closing costs vary based on a variety of factors. They generally are around 2 to 5 percent of your home’s purchase price. Legally, your lender has to give you a loan estimate that should include the price of your closing costs. It should help you determine how much to budget.
Who pays for the closing costs?
Closing costs are paid by both the buyer and the seller. However, how much each party pays is negotiable. Your real estate agent and mortgage lender should be able to help you hammer out the details. As a buyer, you can put off the closing costs by requesting a no-closing-cost mortgage. However, keep in mind that you may be paying more in the long run depending on the details of your loan.
Don’t let the stress closing costs get you down. If you need assistance with any of your property finances or homeowners insurance, contact us at 1-800-395-0144!