Many people have been asking us about closing costs lately, so today we’ll be taking an in-depth look at what these costs are. Closing costs are the expenses paid to close a real estate transaction. Both buyers and sellers have certain closing costs they’ll need to pay.
Buyers will typically pay lender fees, which include a loan origination fee, a fee for running a credit report, an underwriting and processing fee, and an appraisal fee. Also, the lender will usually need an escrow deposit, which is made up of two to three months’ worth of prepaid taxes and insurance. Buyers will also pay a few upfront costs, such as inspection fees.
“The best way to estimate your closing costs is to talk with your agent or lender.”
The seller will typically pay around 8.25% in closing costs. This comes from Realtor fees, title fees, recording fees, and attorney fees. These are generally paid on the day of closing.
However, these are not specific requirements. During negotiations, agents may request for the buyer to pay some of the seller’s fees and vice versa. For entry-level homes, the seller may end up paying most of the closing costs. It all depends on the market and how much demand there is for a home.
Keep in mind that Texas seems to have the highest closing costs in the nation, according to some studies. These studies also show that Nevada has the lowest closing costs. The best way to estimate your own closing costs is to talk with your agent or lender.
If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.
