Closing Costs
- What are the closing costs?
Closing costs are the fees and expenses paid during Closing. They are not included in the final purchase price of the property.
- How much are the closing costs?
Normally, the closing fees are somewhere between 2 to 5 percent of the final purchase price of the property.
- What is included in the closing costs?
That varies from state to state, the type of property in question and the type of loan the bank gave to the home buyer. But here is a list of expenses typically included:
Application fee
Appraisal
Credit report
Escrow fee
Home Owner Association’s Transfer Fee
Private Mortgage Insurance (PMI)
And many more…
- Who pays the closing costs?
Typically the home buyer, but you can try to negotiate with the Home Seller. Some Home Sellers do accept to share or even assume this burden, most of the times deducting it from the final purchase price of the property. That's why Understanding the Housing Market on your Own is important. If you're in a Buyer's Market, a Home Seller will likely cede in order to sell his house once and for all.
Real Estate tips:
Take a look at our Glossary to find other terms and kick your real estate vocabulary up to a new level!
Also search through The Official Real Estate Agent Directory® to find a trustworthy agent to help you in all stages of a home sale.
Popular Real Estate Terms
An individual legally fit and able to undertake an activity or function. ...
In the real estate industry, several professional designations can be awarded to real estate professionals. These professional designations provide real estate professionals with the ...
A Construction method of using twice the number of framing members to provide additional structural strength. ...
Unfortunately, we encounter false advertising daily. False advertising refers to deceptive or misleading ads and commercials that fail to showcase a product’s or service’s ...
Series of intersecting lines dividing a map or chart into equal sections. Series of intersecting bars, wires or support as in a grating or supports in a dropped ceiling. ...
When you hear someone in real estate saying there will be a boring test, they don't mean a dull exam is coming up. What is a soil boring test? Let's find out the meaning of a boring test! ...
A statistical procedure using a body of measurable independent variables to compute an equation that successfully measures and forecasts the variance in another variable, the dependent ...
The meaning of a disclosure statement is a legal document signed by both parties, the lender and the borrower or buyer. This statement outlines the terms and conditions, the potential ...
Written proposals and acceptances applicable to the aspects of the transaction. The escrow agent must follow the purchase and sale agreement. ...
Have a question or comment?
We're here to help.