Closing Costs: Common Expenses on the Buyer's Side

An important part of buying real estate at the Lake of the Ozarks is understanding the expenses incorporated with closing on the sale of a home. Most home purchases don't just involve paying the exact dollar amount for the value of the home and calling the deal closed. In fact, there's typically a lot more in terms of expenses that is involved, especially if you are taking a loan out to obtain the property. You generally don't pay for these expenses upfront like you would with an inspection or appraisal, but they make up for a big portion of the expense over the actual cost of the home. These expenses are called "closing costs."


It's important to recognize that the closing costs vary depending on your position in the transaction (whether or you are a buyer or a seller). Today, Arrowhead Title, Inc is here to explain the buyer's closing costs for you in simple, easy-to-understand terms.

What Is Included In The Buyer's Closing Costs?

The truth is that the closing costs encompass a wide variety of different fees and services. While the exact expenses will vary from transaction to transaction, there are many elements that are consistently included in these costs. Here is a quick overview of some of the common items that are typically included in the closing costs:
  • Loan Origination Fees
  • Credit Report
  • Courier Fee
  • Survey Fee
  • Title Search
  • Lender's Policy Title Insurance
  • Owner's Policy Title Insurance
  • Home Appraisal
  • Property Tax
  • Underwriting Fee
  • Processing Fee
  • Pre-Paid Mortgage Interest
  • Home Owners Association Transfer Fees (if applicable)

The buyer's closings costs typically add up to about 2% - 5% of the total loan amount, but there may be some options to help reduce the buyer's upfront costs. Some mortgage loans allow these costs to be financed into the loan, for example, and sometimes you can negotiate with the sellers to have them cover part (or all) of these expenses.


What Is NOT Included In The Buyer's Closing Costs?

While the buyer's closing costs encompass a lot, there is one major expense that the buyer is not responsible for: the real estate agents' fees. Both the buyer's agent and the seller's agent will receive commission on the sale at closing. This money comes out of the purchase price of the home, and the title company will ensure that these funds are distributed appropriately before the remaining sale price is delivered to the seller.

Arrowhead Title, Inc. Can Facilitate Your Closing

When you buy real estate, our Lake of the Ozarks title company will process the entire transaction to ensure that all funds are accounted for and properly distributed. We will also conduct a thorough title search at the Lake of the Ozarks that will reveal any potential issues with the title that may need to be resolved prior to closing. If you have questions about our title services at the Lake of the Ozarks, give us a call at 573-302-1950 or visit our website to learn more.

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!

+1 us on Google

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

Comments

  1. Thank you for sharing such great information.
    It is informative, can you help me in finding out more detail on
    housing loan interest.

    ReplyDelete

Post a Comment

Popular posts from this blog

Title Commitment vs Title Report

Why Would I Need a Title Search vs Owners and Encumbrance

What Happens If You Don't Pay Your Personal Property Tax?