Special offer

Closing Costs: What To Expect When You Close The Deal.

By
Real Estate Agent with Frank Rubi Real Estate LLC

In our ongoing blog series, "The ABC's of Real Estate," we're delving into crucial topics that provide valuable insights to both buyers and sellers. Today, we're shedding light on a topic that often comes as a surprise to many first-time homebuyers: "Closing Costs." Understanding what to expect when you close the deal is essential for a smooth and successful real estate transaction.

Breaking Down Closing Costs

Closing costs are the various fees and expenses associated with finalizing a real estate transaction. These costs typically fall on both buyers and sellers, and they can add up, so it's vital to be prepared. Here's a breakdown of what to expect:

For Buyers:

Loan-Related Fees: These include the application fee, loan origination fee, and points (if you're purchasing discount points to lower your interest rate).

Appraisal Fee: Lenders often require a professional appraisal to determine the property's value.

Credit Report Fee: This covers the cost of obtaining your credit report.

Title Insurance: You'll need both lender's and owner's title insurance policies to protect against any title issues.

Home Inspection: While not always required, a home inspection is a valuable step in assessing a property's condition.

Escrow Fees: Funds may be placed in an escrow account to cover property taxes and insurance.

Recording Fees: These fees cover the cost of recording the deed and other documents with the county.

Prepaid Expenses: You may need to prepay property taxes, homeowner's insurance, and mortgage interest.

For Sellers:

Real Estate Agent Commissions: Typically, the seller pays the commissions for both their agent and the buyer's agent.

Title Insurance: The seller usually pays for the owner's title insurance policy.

Transfer Taxes: These taxes are paid to transfer ownership of the property.

Outstanding Loan Balances: Any outstanding mortgage balances, liens, or judgments against the property are paid off at closing.

Home Warranty: If offered as an incentive to the buyer, the seller may cover the cost of a home warranty.

Prorated Property Taxes: Sellers often reimburse buyers for property taxes paid in advance.

Attorney Fees: In some regions, sellers may hire an attorney to facilitate the closing.

How Joe Lorenzo, the Law And Order Realtor, Can Help

Navigating closing costs can be complex, and understanding your specific financial responsibilities is crucial. This is where Joe Lorenzo, the Law And Order Realtor, can make a significant difference. Joe's expertise in real estate transactions ensures that you have a clear understanding of your closing costs and are prepared for this final step in your real estate journey.

Ready to embark on your real estate adventure with confidence? Reach out to Joe Lorenzo today.

Don't forget to stay informed about all things real estate by signing up for our weekly email newsletter at https://lp.constantcontactpages.com/su/lCmOyWs. Plus, you can check property values and explore your next potential home on our website at https://www.joelorenzorealestate.com/home-value/Valuation.

Closing costs are a vital aspect of any real estate transaction, and having the right guidance can save you time, money, and stress. Joe Lorenzo and our team are here to support you every step of the way.

Roy Kelley
Retired - Gaithersburg, MD

This is good information to share.

Have a great day and an outstanding week.

Sep 20, 2023 07:16 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great information. Thanks for sharing and enjoy your week!

Bill Salvatore, Realtor- Arizona Elite Properties

Sep 20, 2023 08:15 AM