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!


Contact me today for your FREE Home Consultation!

    Your Name (required)

    Your Email (required)

    Your Phone Number (required)

    Behind the Scenes of a Real Estate Deal

    The job of the Real Estate agent is no longer to "find" you a home. Lets be honest… no matter how good I am at searching the MLS, you're spending 6 hours a night on every real estate site you can find, mostly because you're positive that you're better at finding THE...

    Is Your Agent Exceptional… or a DUD

    Arizona Licensed Agents As of writing this, there are around 92k licensed Agents in the state of Arizona. About half of those are in the Maricopa Valley area, including everything around Phoenix. It's said that about 20% of the real estate agents sell 80% of the real...

    Who Pays for the Real Estate Commissions?

    There has been an uproar in the Real Estate World recently, regarding the commissions paid to the buyers agents.   The Backstory NAR came under attack recently by the DOJ (Department of Justice), for their requirement that a seller offer a buyers agent...

    Under Contract – The Sellers Timeframes

    When selling your home, you will be governed by our Residential Purchase Contract. Many sellers might see the boiler plate jargon and not pay close attention to some of the details within the contract.  That being said, it's very important to understand the timeframes...

    Sellers Post Possession Vs Lease Back

    Frequently sellers are finding themselves in a difficult situation when they go to sell their home. The balancing act of buyer and selling is like the age old dilemma… which came first? The buy or the sell? (You thought the question would be more 'fowl', didn't you?)...

    Switch Bait Financing Issues

    We're in a competitive market right now and buyers are getting desperate. They're up against multiple offers, with variant levels of risky conditions. Buyers waiving contingencies Buyers making earnest money non-refundable Buyers are paying cash more than ever Buyers...

    Hard Money Loans are Not the Same as Cash

    You're in a competitive market and you want to make a strong offer. You're tired of being beat out  by these cash investors. It's understandable… but what can you do? Some buyers have looking into hard money loans, as an option to avoid pitfalls in financing, like...

    Investors and Wholesalers

    Arizona is being purchased up by investors, and the public is feeling the strain. But who are these investors buying up all the homes and why?   iBuyers The iBuyer has been around for a while now, and a lot of sellers have benefited from them. They move in to an...

    Why Are Listing Photos So Important

    We have become online-home-shopping junkies, there's no question about it.  But that's not the reason that the photos are so important for your listing. How the photos are taken Agents don't have a rule for these things. Some will take photos with their cell phones...

    Pin It on Pinterest

    Share This