WHAT ARE BUYER CLOSING COSTS?
To start with, closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. The closing costs are listed on the closing statement that the escrow company provides.
Closing costs are negotiable between buyer and seller. A good agent can navigate to reduce the amount of fees a buyer pays at close of escrow.
The purchase contract the buyer and seller agree to and sign is given to the escrow company. The purchase contract gives the escrow officer instructions as to who is paying what fees that will be listed and itemized on the closing state.
WHAT FEES CAN A BUYER EXPECT AT CLOSING?
Secondly, a buyer can usually expect to pay closing cost fees from the listing below.
The buyer generally will pay:
- Downpayment
- Property Appraisal
- Termite Inspection (negotiable except on VA)
- Lender title policy premium (if getting a mortgage)
- Escrow Fee, 1/2 (except seller pays all on VA)
- Half of recording charges
- HOA transfer fees (negotiable per HOA addendum)
- All new loan charges
- Interest on new loan from date of funding to 30 days prior to first payment
- Home warranty (negotiable per the purchase contract)
- Hazard insurance premium for first year plus 2 months
- All prepaid items (interest, property taxes, HOA dues, ect)
- Courier fees
- Home inspection
How Much Are Buyer Closing Costs?
Next, If getting a mortgage when buying a home fees will be substantially more then when buying a home with cash.
Fees will range from $2,000 on the low side if paying cash to $7,500 on the high side if getting a mortgage.
Then you also have to consider the down payment amount to under stand the total amount of money you will need when buying a home.
We can provide an estimated cost sheet for you so you can get an idea on the money you need when buying a home. Getting pre-approved for a home loan is always the best. Your lender will provide you with a detailed breakdown of the fees and the total amount you will need based on the loan program.
Can Home Buyers Avoid Closing Costs?
Lastly, YES there are ways that buyers can avoid paying closing cost!
As a buyer, there are some creative ways to drastically reduce your closing.
When writing an offer on a home you can negotiate that the seller pays all or part of you closing costs, prepaid items and impounds.
Also talk to your lender about doing what is called a 0/0 loan where you pay NO points or origination FEE. If you plan on living in a home for 5 years or less not paying any points or origination fee is the way to go. Your interest rate will be slightly higher but you will come out ahead based on the time you plan on living in the home. Again consult with your lender.
If you work with us we will give you $500 towards your closing costs!
Calculate Your Mortgage Payment (Principle & Interest)
SAVE $500 ON YOUR CLOSING COSTS!
Expenses Not On Your Closing Statement... The cost to move!
FREE... Moving Truck!
Not listed on your closing statement are your moving expenses.
If you use us to buy a home you can use our moving truck for FREE!
To read about seller closing: CLICK HERE
