Closing Costs!!!!

Closing Costs!!!! The word, COST, alone is bad enough. Just hearing that word sends hate, fear, anxiety through our system. No one likes costs, is uses up our money. But they’re necessary sometimes and you just can’t get around it. What’s even worse than just cost…closing costs. Those words together can REALLY upset someone who is trying to buy a house. It’s hard enough just to come up with the down payment, but now you have to come up with more money to get in that house. Closing costs exist because everyone wants their share of the pie. The loan originator, the bank, the title company, etc. But most people don’t know what these costs are, or they don’t know if the fee should be there or not. Usually closing costs are usually between 2% to 4% of the purchase price. The list below is the usual costs associated with buying a home or refinancing your home (Some states differ on what can and cannot be charged. Always compare your lender).

• Title Policies
• Escrow or Reserves
• Notary
• Wire fees
• Courier / Delivery
• Attorney fees
• Endorsements
• Recording Fees
• State, County or City Transfer Taxes
• Home Protection Plans
• Natural Hazard Disclosures
• Home Inspection
• Loan origination points
• Lender/Bank Fees

Now not all of these fees are paid by the buyer, sometimes the seller will pay some of these costs (It all depends on the deal that is worked out). When it comes to refinancing, usually all of these costs can be rolled into the new loan. But don’t sweat it; it will be worth it once you get into your new home!