Purchasing A Home In Alexandria La--Understanding Closing Costs

Purchasing A Home In Alexandria La--Understanding Closing Costs

After home inspections are complete, the ball is set in motion to prepare your home for closing. And like anything else in life, such activity costs money. Let's examine what home buyers in Alexandria La need to know about closing costs.

What exactly will happen

• The lawyer's office will clear the title. This involves ordering an abstract, examining the title for liens or judgments, and making sure this home is not involved in litigation. Essentially, the lawyer determines if the house is "sell-able", and if the seller really owns the home.
• Your lender will order an apprasial. This expert will let the lender know  1) if the home is worth the purchase price and 2) that the condition of the property meets lending requirements.
• Termite Inspection will be ordered. I do this during the inspection process, but this usually has to be within 30 days of closing. The inspector searches only for VISIBLE signs of wood destroying insects. If bugs are found, treatment is usually required.
• Prepaid items will be collected. Taxes (city and county), insurance premiums, and flood insurance (if required), will be set aside in an escrow account. Each month these moneys will be collected in your mortgage. When the bill is due, the lender will cut the check with your funds. Why is this done? To protect the lender's asset of course!

Who Pays these fees

 The buyer of course. In Louisiana the seller has very limited closing fees. Depending on loan type, amount, and lender selected these fees could be 3,500-9,000 dollars.

What if I don't have 3,500-9,000 dollars

In the Alexandria La housing market we can request that the seller cover some (or perhaps even all) of the buyer's closing costs. But please understand, A CLOSING COSTS DOLLAR IS THE SAME THING AS A PURCHASE PRICE DOLLAR.

What does this all mean

First time buyers often assume that closing costs are a given. They will then attempt to offer under the asking price in addition to all closing costs. In our market such offers rarely get accepted. Remember to keep closing costs in mind when preparing your offer. No let's find your dream house. Search Alexandria homes for sale to see what is currently available.