What's Included in Your Closing Costs?

When we talk about the costs of buying real estate at the Lake of the Ozarks, we talk about several different things. The home inspection, home appraisal, and earnest money are just a few examples. The other major expenses are lumped together in a broad category that is simply 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
  • Prepaid Mortgage Interest
  • Homeowners Association Transfer Fees (if applicable)

The buyer's closings costs typically add up to about 2.5% - 4% 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.

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