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
Glass containing wire support to make it stronger. There is less chance of glass being broken into pieces and hurting people. ...
The United States has a law named “eminent domain” that grants local, state, or federal government the right to take ownership of a private property with or without the consent ...
Subdivided acreage with utilities usually situated within or adjacent to established communities. ...
A rule that the price of a house should not exceed about 2 to 2.5 times your family's gross annual earnings. Example : If annual gross income is $70,000, the highest price one could afford ...
Value that a speculator believes an investment will reach at some point in the future. ...
Owner of land allowing another to use space under the ground, such as to install a sewer or gas line. ...
Financing of a home based on how much equity the homeowner has in it. The interest rate is typically a variable one. ...
Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...
To obtain the right through authorization to act as a legal representative and agent for another. ...
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