When it comes to the home buying and selling process, there are a lot of added costs involved, apart from the property price itself. These closing costs are added fees that come along with purchasing a property and are usually taken care of at the “close” or conclusion of the real estate transaction.
Depending on your location, the type of mortgage you take out and the property you’re planning on purchasing, these closing costs can be substantial. They should always be taken into consideration when deciding on the type of home one can afford.
Although every real estate transaction is unique, the following list includes some of the typical closing costs associated with buying or selling a home.
Home Buyer Closing Costs
The following fees are usually covered by the buyer when the real estate transaction is ready to close. It’s common that as a buyer you will end up paying between 2% and 5% of the property’s sales price in closing costs.
Credit Check Charges
Loan application fee
Mortgage Insurance (if your down payment is less than 20%)
Home Seller Closing Costs
The seller’s closing costs are often deducted from the profit of the property purchase, instead of the money coming directly out pocket. Home sellers can expect to pay between 6% and 10% of the total property price at settlement.
Real Estate Agent Commission
Costs (and a possible penalty) to pay off your home loan
Title Transfer Taxes
Interested in learning more about closing costs and exploring the fees involved in purchasing a property in your area? Contact me today!
Source: Property Simple.