A Seller's Guide To Closing Costs
As a buyer or seller, closing costs can be daunting and perhaps confusing. To better help makes sense of closing costs, let's consider 3 categories of costs:
-title and escrow fees
-recurrent closing costs
These fees are paid by the buyer and generally include:
-credit report ($25-$40.00)
-appraisal fees (450-650.00)
-origination fees, flood insurance fees, tax service
Title and Escrow Fees:
Please see table below to get an idea of some of these types of fees. These fees are also often dependent on price of home. Here's a look at what costs are traditionally covered by which party.
(To get a PDF version of the table above, click HERE)
Recurring Fees: These fees often vary depending on the loan and bank's requirements, however often you may see the following fees be put into a separate escrow or impound account:
You may need to have on hand or in escrow the following for 6-12 months:
- Homeowner's Insurance
- Pro-rated Property Taxes
- Mortgage Insurance
- Prorated Interest
As you can see there are a lot of fees, variables and costs associated with buying or selling your home. Your agent can work with you to answer any questions you may have regarding this process. In generalities, a seller should plan on paying 7% of the proceeds of their home sale in closing costs, not counting any loan or mortgage payoff amounts, or payoff of any existing liens that may be on the property.
If you are considering buying or selling your home and want to get a little more clear on what your closing costs may be, please feel to reach out and we can help devise a better estimate of what you may pay.