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

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.   Live Customer First Help from GoWpNow:   GoWpNow and The Warburton Team have a dedicated group of licensed concierges standing by to answer questions and help you in your search     Talk to your personal Customer First Concierge or text them questions and comments. We are ready to connect with you now.   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.

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Top 15 Closing Costs You Need to Know!

Four Categories of Closing Costs: When buying or selling a home in the United -States buyers and sellers will encounter several categories of costs. Category 1 is your down payment. Category 2 is your deposit when you make an offer on a home. Category 3 is commissions, particularly if you are a seller, (though this may change in coming years to include the buyer). Category 4 is what are commonly referred to as “Closing Costs “. 15 CLOSING COSTS GoWpNow and The Warburton Team   Top 15 Closing Costs: The main Closing Costs typically include:   1. **Loan Origination Fees**: Charged by the lender for processing the new loan.   2. **Appraisal Fees**: To assess the home's value for the lender.   3. **Credit Report Fees**: For obtaining your credit history from credit bureaus.   4. **Title Insurance**: Protects the lender and possibly the buyer against problems with the title.   5. **Escrow Fees**: Paid to the company overseeing the closing process.   6. **Recording Fees**: For recording the new deed and mortgage with the local government.   Search New Homes in SoCal     7. **Survey Fees**: For a property survey to confirm property lines.   8. **Attorney Fees**: If an attorney is involved in the closing process.   9. **Home Inspection Fees**: For a professional inspection of the property's condition.   10. **Pest Inspection Fees**: In some regions, a separate termite or pest inspection is necessary.   11. **Homeowners' Insurance**: Typically, the first year’s premium is paid at closing.   12. **Property Taxes**: Buyers often need to pay a portion of the property taxes upfront.   13. **Prepaid Interest**: Interest on the mortgage that accrues from the date of settlement to the first monthly payment.   14. **Private Mortgage Insurance (PMI)**: If your down payment is less than a 20%, you might need to pay the first month's PMI.   15. **Transfer Taxes**: Taxes for transferring the title from the seller to the buyer.   Closing Costs vary by property: The specific costs can vary based on the location, type of property, and loan details. Buyers should receive a Closing Disclosure form from their lender that outlines the exact costs they will incur. Buyers and Sellers can obtain a summary of potential Closing Costs from an escrow company, an experienced Title Officer or an experienced Real Estate Team.    Experienced Helpers: Remember most real estate agents close less than 10 transactions a year, many less than five. Real estate buying and selling has many twists and turns so why choose a dentist who you like to play golf with but has only done 5 fillings a year! Choose experienced, multi transaction professionals who will support you in your real estate journey.   Search Ocean View Homes in SoCal     Live Customer First Help from GoWpNow:   GoWpNow and The Warburton Team have a dedicated group of licensed concierges standing by to answer questions and help you in your search     Talk to your personal Customer First Concierge or text them questions and comments. We are ready to connect with you now.   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.   Search All Listings in SoCal  

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Solutions for the Top Five Challenges Facing Homebuyers in 2024

The landscape of home buying in 2024 presents unique challenges. However, with every challenge comes a solution. Solutions for Rising Property Prices: Rising property prices remain a significant hurdle. To navigate this, homebuyers should focus on areas with potential for future growth rather than established hotspots. Exploring emerging neighborhoods can offer more affordable options. Additionally, considering smaller or less traditional types of homes, such as  townhouses or modular homes, can also be cost-effective. HOMEBUYERS 2024 GoWpNow and The Warburton Team Search New Homes in SoCal     Solutions in a Competitive Market: The competitive nature of the market can be daunting. To stand out, buyers should get pre-approved for a mortgage, making their offers more attractive to sellers. Working with an experienced Real Estate Team with multiple professionals who have a deep understanding of the market can also provide a competitive advantage. These professionals may have knowledge of listings before they hit the market. Also their experience with many hundreds of transactions will give you a strategic edge.   Solutions when Rates are High: Stricter mortgage requirements have made loan approval tougher. Also higher interest rates have significantly reduced the loan amount that buyers qualify for. To improve chances, buyers should work on boosting their credit score and paying down debts. New home builders sometimes offer lower interest rates for standing inventory. Understanding different types of mortgages is also important. Many types of loans are becoming available for investors and homebuyers. Don’t just talk to one loan officer because you are buddies. Consult multiple loan and real estate professionals and ask for different loan programs. Lenders may vary by as much as 15% in what they say you qualify for. Always ask for Loan Estimates in writing.   Search Ocean View Homes in SoCal     Solutions for Low Inventory: Limited housing inventory has been a persistent issue. To counter this, buyers should expand their search area and be flexible with their wish list. Make a list of “Wants” and “Must haves” - a little compromise and astute prioritization could make the difference between being a renter and a homeowner sometimes, considering properties that need a bit of work can uncover hidden gems that others might overlook. Remember, if a property is a major fixer it probably will not qualify for an FHA loan or a down payment assistance loan. There are even solutions for this, however, with government loans that finance the repairs.   Solutions for Eco Issues: With a growing emphasis on sustainability, finding eco-friendly homes is increasingly important. Unfortunately, older homes may be lacking in this department, but still improvements can be made over time to improve the eco-footprint of the home. Buyers can look for homes with energy-efficient appliances, sustainable materials, and good insulation. Additionally, exploring renewable energy options like solar panels can be both environmentally and financially beneficial in the long run.   In conclusion, while the challenges for homebuyers in 2024 are real, they are not insurmountable. With the right strategies and a bit of flexibility, finding the perfect home is still very much a possibility.   Live Customer First Help from GoWpNow:   GoWpNow and The Warburton Team have a dedicated group of licensed concierges standing by to answer questions and help you in your search     Talk to your personal Customer First Concierge or text them questions and comments. We are ready to connect with you now.   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.   Search All Listings in SoCal  

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