- Down Payment: The down payment is a percentage of the purchase price (typically 10%) that the buyer on signing the contract. It is typically the largest cost associated with buying a house.
- Closing Costs: Closing costs include various fees and charges associated with finalizing the purchase. These may include attorney fees, title search and insurance fees, appraisal fees, loan origination fees, and recording fees. The total amount of closing costs can vary depending on the purchase price and location.
- Prepaid Expenses: Certain expenses need to be prepaid at closing. These may include property taxes, homeowner’s insurance premiums, and mortgage interest. Lenders often require buyers to prepay a certain amount into an escrow account to cover these expenses.
- Loan Fees: If you’re obtaining a mortgage, there may be additional fees such as an application fee, credit report fee, and mortgage insurance premium.
- Home Inspection and Survey Fees: Before closing, it’s common for buyers to conduct a home inspection and obtain a property survey. These services come with their respective costs, which are typically paid by the buyer.
- Title Insurance: Title insurance protects against any defects or issues with the property’s title. Buyers are usually responsible for purchasing title insurance policies for themselves and their lender.
It’s important to review the closing disclosure provided by your lender and work with a real estate attorney or agent to understand the specific costs and fees associated with your transaction. By being prepared and informed, you can navigate the closing process more smoothly and avoid any financial surprises. If you have any questions regarding your specific circumstances, don’t hesitate to contact us today.
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