Real Estate Closing Costs: What to Expect
As a buyer or seller, real estate closing costs need to be factored into the bigger picture. Closing costs can add up quickly. If you anticipate and plan for these costs, they’re less likely to be overwhelming. Although, they can be quite frustrating.
Buyer Closing Costs
Here are a list of a few of the closing costs that buyer’s should expect and prepare for:
Appraisal fees
Title costs– If you’re getting a loan or paying cash you’ll have to pay these costs and closing.
Title Insurance – If you’re getting a loan, title insurance is required by your lender to protect them from liens, encumbrances, or anything else that could impact the lender’s position. They need to have an advantageous position.
Credit report fees for lenders
Processing fees– There’s always someone behind the scenes doing all of the paperwork and making sure everything is just right. They make sure your application is in the right format that the underwriter wants, every document is in line, all forms are accurate & completely filled out. The processor is the magician behind the scenes making sure everything is thorough and accurate that a loan officer might not have time to do or isn’t good at.
Underwriting fees– All mortgage companies have underwriters. Depending on the lender, underwriting fees can be anywhere from $800-$900 or even more depending on the lender.
Reporting Fees
Courier Fees
There’s a lot of different pieces to this puzzle. All of these parties work very hard to get your transaction closed.
We do highly recommend that you get a home inspection done before closing on a home. This isn’t required of course like the above costs but should be factored in as well.
Seller Closing Costs
Here are a list of a few of the closing costs that seller’s should expect and prepare for:
Title Insurance– A seller needs to provide this for the buyer. This communicates that the title being presented is clean. It’s been scrubbed and double-checked by a licensed title company ensuring that you are the owner of the home and you are legally able to sell it.
Closing Fee from the Title Company– Title companies will charge fees for notarizing your signature on important documents like the deed of trust and explaining all of the documents to you. The county your home is in will also charge a fee to transfer the title from the previous owner to you.
Real Estate Commission– Expect to pay your agent 6% commission fees.
Keep Real Estate Closing Costs in Mind
Whether you’re a buyer or seller, keep these real estate closing costs in mind when you consider your next real estate transaction. They might seem overwhelming but our team of real estate experts can help you navigate closing costs. Reach out to Utah’s Best Real Estate Group with any questions
