What are “Closing Costs”. How much are they? Who pays them?

by The Warburton Team Brokered By eXp

The closing costs when buying a home in the USA typically range from about 2% to 5% of the home’s purchase price. These costs can include various fees such as loan origination fees, appraisal fees, title insurance, escrow fees, and others. The exact amount will depend on factors like the price of the home, the type of loan, and the specifics of your transaction.

CLOSING COSTS

GoWpNow and The Warburton Team

For example, if you’re purchasing a home for $500,000, you can expect to pay between $10,000 to $25,000 in closing costs. However, it’s important to consult with professionals, (not just friends), for a more accurate estimate based on your specific situation.

Talk to a real estate attorney if you have one. Ask an escrow company for an Estimated Buyer Closing Costs document - a good Escrow Company will be happy to do this for you. They will ask you for the purchase price of the property and what kind of loan you plan to use and how much money you will put down.

You can also talk to a good Title Officer. Many real estate agents will use a Title Officer just because they like them, or because they visit their real estate meetings and bring cookies. What you want to find is a seasoned Title Officer who has closed thousands of transactions. A seasoned Title Officer will also be happy to give you documentation and estimates regarding closing costs.

Of course, you can also talk to a real estate agent. You should find someone who has closed 100 or more transactions in the last two or three years. This means they will have enough experience to cover most scenarios. Look for rational, factual advice, based on recent experience in multiple transactions.

Who pays for closing costs? Closing costs can be paid by the buyer or the seller. This is negotiable. Some closing costs can also be absorbed into the loan. This is quite common in VA loans and FHA loans.

The bottom line is this. Closing costs are real, and they need to be paid. Assemble the right team of Customer First professionals who will work together to construct the best scenario for your financial situation.

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Thank you for considering GoWpNow and The Warburton Team as your partner in this exciting journey. We look forward to assisting you in finding the property that suits your needs.