Closing costs? Didn’t I already buy my house?
Kind of. So you already paid for the door on the house, but closing costs gives you the right to close that door on your real estate agent, lender, mortgage broker, and seller. It encompasses any fees charged during the “real estate transaction” and are paid by the homeowner once the property has been transferred from the seller to them.
While some people you work with will be upfront about these fees, others won’t be. Therefore, it’s a good idea to set aside about two to five percent of the purchase price of your house for closing costs.
So, what exactly is included in closing costs?
Here is a list of everything that could be included in your closing costs:
- Application fee
- Credit Report fee
- Appraisal fee
- Attorney fee
- Closing/Escrow fee
- Home Inspection fee
- Homeowners Insurance
- Property Transfer Tax
- Property Taxes
- Origination fee
- Underwriting fee
- Survey fee
- Title Search fee
- Private Mortgage Insurance
- Homeowners Association Transfer fee
- Title Insurance
- Pest Inspection (required in some states)
- Prepaid interest
- Wire Transfer fees
- Flood Insurance (if property is in a flood zone)
Depending on the location of your real estate purchase and the type of loan you applied for, costs will vary.
To get a better idea of what to expect in your location and to reduce the amount you have to pay in closing costs, work with our mortgage experts today.
Unlike most lenders, Shop Your Own Mortgage doesn’t charge ANY borrower fees. This includes bank fees, origination fees, processing fees, and credit report fees. To learn more about how we can help, give us a call today!