5 Things You Need To Know About Closing Costs

September 21, 2020

Closing costs are involved in every home purchase, but what are they?

  1. Closing costs are typically between 2-3% of the loan amount.
  2. Lender Fees – Costs associated with originating, processing and underwriting of your loan, including appraisal.
  3. Title and Attorney Fees – Costs associated with settlement, lender’s and owner’s title insurance, title examination and document prep and storage.
  4. Government Fees – These comprise of property taxes, recording fees, and real estate transfer tax.
  5. Prepaid Costs – HOA fees, homeowners insurance and mortgage interest.  Based on the closing date, a certain amount of prepaid homeowners insurance is collected.

Typically buyers are responsible for covering their own closing costs the day of closing.  Some loans allow for closing costs to be rolled into their mortgage.  The great news is that buyers and sellers can negotiate who pays all or a portion of the buyers’ closing costs.  To learn more about closing costs and how we can help you negotiate a successful contract on your next home, give us a call, text or email!

Get Pre-approved.