Closing Costs 101 - Be Prepared!
There are a lot of costs associated with buying or refinancing a home that you may not be aware of. Your mortgage lender will have their own fees, but there will also be closing costs associated with your purchase. Arrowhead Title knows that this process can be confusing, so we are here to help clear up some of the confusion. As the most trusted title company at the Lake of the Ozarks, we have a lot of experience with closing procedures and who is responsible for each of the different charges. Keep read to learn more!
Keep in mind that this isn't an exhaustive list and there could be other charges at your closing, like Homeowner's Association Fees. In general, you can expect the amount to add up to between two and four percent of the total sale price on the home.
If you are the one buying a home, you get to choose your title agency. Arrowhead Title would be honored to be selected as the title company for your next real estate transaction. We are experienced, professional, and ready to help you in every way we can. Give us a call to learn more, and let your lender know you want to use Arrowhead Title!
What are Closing Costs Anyway?
It can vary for every real estate transaction, but in general the closing costs are the price of doing business and getting all the necessary information for a smooth and well-founded transaction. Below is a list of the general fees you can expect to see at your real estate closing:
- Appraisal Fee
- Property Tax
- Underwriting Fee
- Title Search Fee
- Title Insurance
- Loan Origination Fees
Keep in mind that this isn't an exhaustive list and there could be other charges at your closing, like Homeowner's Association Fees. In general, you can expect the amount to add up to between two and four percent of the total sale price on the home.
Who is Responsible?
It actually can depend on the fee. Some parts of the transaction are covered by the buyer, while others are covered by the seller. When you get your final documents before coming in for your closing date, it will have the total amount you are responsible for as well as what each fee is. Look over this to make sure there aren't any discrepancies.
If you are the buyer, you can expect to pay most of the fees associated with closing. However, there is an option for buyers and sellers to negotiate the cost of closing. Sometimes a motivated seller will offer to pay part of the closing costs in order to make it a little less of a burden on the buyer. This can sometimes push a home buyer to make the leap and buy the home.
Do I Pay Upfront or Over Time?
It can depend on the type of loan that you have. Traditionally, though, closing costs must be paid upfront. So as you are calculating the amount of cash you are able to give as a down payment, make sure you are also setting aside 2-4% of the home sale price for closing costs. Most of the time this will be required in the form of a cashier's check.
Title Company at the Lake of the Ozarks
If you are the one buying a home, you get to choose your title agency. Arrowhead Title would be honored to be selected as the title company for your next real estate transaction. We are experienced, professional, and ready to help you in every way we can. Give us a call to learn more, and let your lender know you want to use Arrowhead Title!
Where Accuracy Matters!
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