Just How Much Are Closing Costsand Who Pays for Them?

Closing costs are often a mystery to first-time home buyers—and even first-time sellers. Here’s a breakdown of what they are, and who’s going to shell out for which.

Hi i’m kara amir with coldwell banker so you found the home of your dreams and are ready to make a deal hold on what about closing costs what are they and how do they work here’s a look at who’s responsible for what when talking closing costs these fees paid to third parties to help facilitate the sale of a home typically total two percent to seven percent of the

Home’s purchase price so on a 250 000 home you can expect the amount to run anywhere from five thousand dollars to seventeen thousand five hundred so now that you kind of understand first question who pays closing costs and when usually both buyers and sellers typically pitch in to cover closing costs although buyers shoulder the lion’s share of the load three

Percent to four percent of the home’s price compared with sellers one percent to three percent and while some expenses must be paid up front before the home is officially sold such as the home inspection fee when the service is rendered and others like property taxes and homeowners insurance are recurring most are paid at the end when you close on the home and

The keys exchange hands so what can buyers expect to pay buyers pay the majority of these costs since many of these fees are associated with the mortgage a loan amount origination fee which lenders charge for processing the paperwork for your loan a fee for running your credit report a fee to underwrite and assess your credit worthiness a fee for the appraisal

Of the home you hope to own to make sure its value matches the size of the loan you want and a fee for the home inspection which checks the home for potential problems from cracks in the foundation to a leaky roof that’s just to name a few you can check out realtor.com and this article page for the full list okay with that little bit of info now let’s turn to

How much sellers can expect to pay a closing fee paid to the title insurance company or attorney’s office where everyone meets to close on the home taxes on the home sale a fee for an attorney if the seller has one and a fee for transferring the title to the new owner keep in mind that sellers typically pay all real estate agents commissions which amount to

Four percent to seven percent of the home sales price to estimate these plug your numbers into an online closing cost calculator or ask a real estate agent lender or mortgage broker for a more accurate estimate then at least three days before closing the lender is required by federal law to send buyers a closing disclosure that outlines those costs once again

One final tidbit before you close make sure to review these documents to see if the numbers line up to what you were originally quoted you

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Just How Much Are Closing Costs—and Who Pays for Them? By Realtor.com