THE HOME BUYER'S GUIDE TO CLOSING COSTS


Closing costs are the administrative and legal fees that come with purchasing a property. Typically, buyers pay the closing costs. But, there are situations where the seller takes care of closing costs if it is agreed upon during negotiations (this is why it’s important to hire a competent buyer’s agent!).  
There are different fees that need to be paid when escrow closes. The closing usually happens about 30-45 days after the offer has been accepted or whenever escrow ends. While the nationwide average closing cost is about 2.1%, a buyer must be ready to have at least 2-3% of the home's sold price on hand to pay at closing.
It may vary from state to state but generally here are the closing costs:
Homeowners insurance - typically you will have to pay this for the first year.
Escrow fees - this goes towards the escrow company's services who oversee the purchase and transfer of the home.
Appraisal fees - this goes towards the company that appraises the home to ensure it's in line with the neighborhood market.
Credit report - this is run by the lender when trying to determine the interest rate of the loan and to help gauge credit-worthiness.
Legal fees - can run $300-$600, depending on your attorney and services you will require.
Origination fee - lender administration fees.
Recording fee - paid to make the official record of the transaction.
Underwriting fee - paid to the lender to determine if the loan will be granted.
Application fee - fee to process the application for the loan.
Title insurance – you are paying this to protect yourself from undisclosed issues with ownership.
Property tax - paid to local jurisdiction.
Survey fees – paid to make sure property lines and boundaries are correct. 
There are some other common fees like brokerage commission fees, document stamps, courier fees, document taxes and more.
Closing costs are part of the equation when buying a home. Make your purchase with 100% confidence by understanding exactly what you’re getting when you sign the paperwork. A reliable, experienced and trustworthy agent can guide you from start to finish and make it a positive experience.

As I always say, buying a home is a big step in anyone's life and I feel honored to be able to share this experience with my clients and their families. Meet our team and let us help you in your home buying journey or call us at (907) 720-4663- we’re here to help!

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