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)

    Preparing for the Appraisal

    Preparing for the Appraisal

    I was asked yesterday, “What is an appraisal?” Yes, it was a child that asked that. (give my clients some credit) But as I was answering, it occurred to me that most sellers know that an appraisal is the value on their home… but I wonder if they know that really, it’s...

    The Craziest Reasons People Won’t Buy Your Home

    The Craziest Reasons People Won’t Buy Your Home

    My biggest downfall is that I love houses. I love every house, even houses that I would never live in. I walk into every home and I see immediate potential. Chances are that if I’ve ever been to your home, I’ve mentally remodeled it, or imagined myself living there. I...

    How Long Will They Last?

    How Long Will They Last?

    When people are getting ready to sell their home, they always go straight for the same items. They clean, they paint, they even patch holes in walls or replace the broken outlets. Those things will get the buyers in the door, but more often than not, the things that...

    What to Expect from the Inspection Process

    What to Expect from the Inspection Process

    After you've accepted a contract from a buyer to purchase your home, the following 10 days are the LONGEST days of your life. (well, except the last 10 days of a pregnancy) Unless otherwise negotiated in the contract, the buyer has 10 days to inspect the property...

    Top 10 Staging Tips to Sell Your Home Fast!

    Top 10 Staging Tips to Sell Your Home Fast!

    With all the competition in today’s marketplace, professionally staging your home has never been more important. Here are some top tips from Sure Fit on how to beat your competition and allure the attention of buyers. 1. Consider curb appeal You may not have the funds...

    5 Tips to Get a Higher Sales Price on Your Home

    5 Tips to Get a Higher Sales Price on Your Home

    Reports of rising home prices as the housing recovery accelerates are prompting more owners to think about jumping into the real estate market. But before they take the leap, potential home sellers need to consider how technology has changed the way homes are sold in...

    Pin It on Pinterest

    Share This