What Are Closing Costs?
Closing on a home is one of the most exciting steps in buying real estate. It’s the moment where ownership officially transfers from the seller to you. But it can also be a confusing process, especially when it comes to understanding closing costs—the fees and expenses required to finalize your home purchase.
What Are Closing Costs?
Closing costs, also known as settlement fees, cover a variety of services and charges related to the purchase and financing of your new home. These costs can include mortgage-related fees, government-imposed taxes, and other property-related expenses. While they often amount to 2-5% of the home’s purchase price, they can vary by location and lender.
Here are some common closing costs you might encounter:
• Appraisal Fee: Covers the property’s appraisal to determine market value.
• Credit Report Fee: Paid for the lender to pull your credit report.
• Loan Origination Fee: Covers processing costs for your mortgage.
• Title Insurance Fees: Includes a title search, title examination, and title insurance.
• PMI Premium: Private Mortgage Insurance for loans with low down payments.
• Escrow Accounts: Funds for property taxes and home insurance.
• Recording Fees and Transfer Taxes: Charges for filing documents and transferring ownership.
Can Closing Costs Be Negotiated?
Yes! During the offer stage, you can negotiate with the seller to cover part or all of the closing costs. A skilled real estate agent can help structure your offer to minimize your out-of-pocket expenses.
Navigating closing costs doesn’t have to be overwhelming. Contact me today to discuss how I can help you through the buying or selling process with confidence and ease! Visit www.key2sc.com or email me at get@andrea-hackett.com to get started.