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!


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!

+1 us on Google

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049
Location: VLG OF 4 SSNS, MO 65049, USA

Comments

Post a Comment

Popular posts from this blog

Title Commitment vs Title Report

Image
Do you know the difference between a title commitment and a title report? While these documents may sound similar at first, they actually serve very different purposes and should not be confused. As your trusted title company at the Lake of the Ozarks , Arrowhead Title is here to help clear up any misunderstandings you may have about title commitments and title reports. Title Commitments Title commitments are issued when someone is in the process of buying a home or piece of property. After the title search has been conducted (that is, after your title company has thoroughly researched the public documents for any pertinent information regarding the property), the next step is to issue the title commitment.  The title commitment is exactly what it sounds like: a commitment  to provide title insurance to the lender and the buyer under the terms described. The title commitment outlines the conditions and exceptions that will impact the title insurance policy. Condi...
Read more

9 Fun Facts About Title Insurance

Image
Title insurance is a crucial part of buying real estate, whether a home, business, or commercial or residential plot of land. Without title insurance, your right to use and occupy your new property may be hindered by rights and claims asserted by others - potentially even years after the closing date. Despite its incredible importance, title insurance is largely misunderstood (if it's understood at all) in the general community. Arrowhead Title, Inc. is here to educate you on our unique industry by filling you in on these fun facts about title insurance. Fun Facts About Title Insurance 1.   Benjamin Franklin was the first person to come up with the concept of title insurance. 2.   Title insurance's primary focus is proactive, not reactive - it aims to prevent issues from ever arising in the first place. 3.   Title insurance is available in several other countries (not just the States). For example, it is used in Northern Ireland, Canada, Mexico, New Zealand, ...
Read more

9 Documents to Expect at Closing, Part 2

Image
Closing day is a date you've been looking forward to for a long time. All you have to do is get through a huge stack of legal documents without getting carpal tunnel! As the best title company at the Lake of the Ozarks , Arrowhead Title knows exactly what documents are coming your way. Last week we talked about four of the major documents you can expect on your closing date. Read on to learn about five more documents you will want to be ready to review and sign. Call Arrowhead Title for a team you can trust - we would love to help you prepare for and navigate the closing process! 5) Title Documents When you purchase your home, you are actually purchasing the right to the property. You won't technically own your home until it is paid off, but the title documents give you the legal right to the property. At this point in the closing process, the title has been thoroughly researched by the title company. During this search, any issues associated with the title should have...
Read more