Preparing for Closing Costs - Knowing What to Expect

Arrowhead Title understands that not everyone has experienced a real estate transaction before. We have been conducting real estate closings at Lake of the Ozarks since 1984 as a title company in Lake Ozark, and over the years we realize some people aren’t expecting certain costs associated with their real estate closing. As a title agency at Lake of the Ozarks, we are very dedicated to communicating with our clients so they don’t have to worry about surprises. We wrote today’s blog to let you know some of the common costs associated with real estate closings. If you would like to know what to be prepared for financially when buying a home at Lake of the Ozarks, we invite you to read this blog!

Expenses Related to the Property

Obviously, with a transaction of this size, it is essential that you know you’re getting what you think you’re buying. Both you and the bank will want to protect your property ownership rights with a title search and title insurance. The bank also needs to know the home is worth what you’re borrowing, and that requires an appraisal. You need to know there are no hidden problems with the house as well. So, you will want a home inspection.

Expenses for Taxes and Insurance

Your lender will also most likely want you to pre-pay for taxes and homeowners’ insurance. That way they are protected if something happens to the house, and they know there will be no risk of tax delinquencies.

Expenses Related to the Mortgage

There may be various fees with the bank in association with buying your home. Those can include an origination fee, an underwriting fee, an application fee, etc. There may be some legal fees and applicable local fees as well. You should also be prepared to provide a credit report to prove to your lender that you have the ability to pay your mortgage payments.

Who is Responsible?

It is normally the responsibility of the buyer to pay for these costs. Typically, they amount to about 2 to 5% of the loan amount. But if the seller is motivated, your real estate agent may be able to negotiate for them to pay some of the cost, or to include it in the price of the home and loan to cover those costs.

When it Must be Paid

Typically, these closing costs are paid upfront at the time of your closing, although sometimes they may be paid over time with your mortgage. So just in case, be prepared to have 2 to 5% of the cost of your loan and savings for your closing.

At Arrowhead Title, we are dedicated to making sure our clients know what is happening every step of the way. If you are thinking about buying a house at the Lake of the Ozarks, we want you to know that you get to decide which title company you use. Choose one that cares about you and understands the importance of your transaction. Arrowhead Title is here for you, give us a call if you have any questions. If you are interested in hearing more tips and information about the real estate market at Lake of the Ozarks, be sure to follow us on social media using the links below.


The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!


750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

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