CLOSING COSTS EXPLAINED

What are some possible closing costs you may encounter when selling your home, and who pays for what?

Closing costs are often confusing. When you apply for your loan, you will receive a Good Faith estimate of these charges, as well as an explanatory booklet. The below is a mini glossary explaining the terms used.

Appraisal Fee: A one-time fee to pay an independent fee appraiser.

Credit Report Fee: A one-time fee covering the cost of the credit report.

Document Preparation Fee: There may be a separate fee covering the preparation of the final legal papers

Homeowners Fee: Some associations may require an upfront deposit or dues, as well as a fee to transfer their records from seller to buyer (transfer fee). These amounts vary for each association.

Loan Discount: A one-time fee to adjust the yield on the loan to what market conditions demand. (often called POINTS).

Loan Origination Fee: A one-time set up fee charged by the lender for their administrative costs.

Miscellaneous Title Charges: The title company may charge fees for items such as title policies,document preparation, recording fees,and a escrow fee.

PMI Premium: Depending on your down payment,you may have to pay an up front fee for mortgage insurance. Lenders may also require monies to be held by them in a reserve account.

Prepaid Interest: This is a per diem charge that will vary depending on the time of the month your loan closes.

Taxes and Hazard Insurance: Depending on the month your property closes, you may be required to reimburse the seller for property taxes.You will have to pay a year’s hazard insurance premium up front, and maybe required by the lender to put a certain amount for taxes and insurance in a reserve account. This account is held by the lender.

Who pays for what closing costs

Contact me today for a marketing proposal for your home and you’ll see why my listings sell faster and for more money than the rest!

480-788-3232
Serena@SereneLivingAZ.com

Contact me today for your FREE Home Consultation!

    Your Name (required)

    Your Email (required)

    Your Phone Number (required)

    The Claims History Report

    First, lets just clear something up... The Claims History is NOT the same as a CLUE report. We do not get a CLUE report from the insurance company. A CLUE is a Comprehensive Loss Underwriting Exchange report. A CLUE report will give you the claims history, sure, but...

    The Sellers Disclosures (SPDS)

    The Sellers Property Disclosures Statement is commonly known in the Real Estate world as the SPDS (or Spuds, but never spell it that way!). In the state of Arizona, we are what you would refer to as a Disclosure State. That means that the seller of a property is...

    The Cure Notice

    In the purchase contract, there are MANY items that both parties are responsible to follow. If you do not follow these terms of the contract, you may be in breach. However, according to the Arizona Purchase Contract, if you are outside of the terms of the contract,...

    The 3 Types of Agents that will Discount their Fee for you

    The 3 Types of Agents that will Discount their Fee for you

    Normally I don't work a lot with strangers. But in the last month, I've had 2 people email me out of the blue and want me to list their house. Their claim is that they have found me online (duh) and they think I'm probably the best agent out there... (obviously) and...

    Going Places in the Golden Years

    Going Places in the Golden Years

    Retirement is the perfect time to consider moving to a smaller place or a more relaxing environment. Read on for a few simple suggestions to make the process as stress-free as possible. Sort and surrender Getting older often means downsizing to get rid of items that...

    Pin It on Pinterest

    Share This