Are you ready to purchase a home for sale in Massapequa? If so, you may be wondering what closing costs are. After all, it’s important that you are aware of all costs associated with your home-buying transaction.
Are you aware of what closing costs are?
We understand just how important it is to be knowledgeable about what closing costs are when it comes to a home for sale in Massapequa! That’s why, here at Kim Holland Homes, as Massapequa real estate agents, we have comprised some helpful insight to assist you with learning more. So, be sure to continue reading to discover some great information:
- Closing Costs. First off, know that closing costs are the fees presented for the services and expenses that are required to finalize a mortgage. So, regardless of if you are buying a home, or refinancing, know that you will have to pay closing costs. Overall, if you are purchasing a home, know that you will have to pay between about two and five percent of the purchase price in closing costs. Attorney fees, title insurance payment, future taxes and municipal search fees are some of these costs.
- Title Fees. When it comes to the amount of money that comprises closing costs, know that about 70% are title-related. This means that lenders will require buyers to purchase title insurance that covers the lender up to the amount that they have been loaned. Also, know that buyers purchase title insurance. By doing so, the buyers can protect their own investment in the home.
- Fees Associated with Lenders. Closing costs will also contain some lender fees. Typically, most lenders will bundle all of their costs together, which is known as an origination fee. But, know that other lenders may break up their fees into specific categories, such as courier fees, administrative fees, credit checks, and appraisal costs, just to name a few.
- Prepaid Costs. In general, most lenders will require borrowers to set up an escrow, or impound account, so that they can collect property taxes and homeowner’s insurance. These are known as prepaid costs. Also, know that a homeowner’s association fee, which is another common prepaid cost, can be represented if you are moving into a townhouse or condominium community.
- Who Pays? Whether you are buying a home for sale in Massapequa, or selling a home, know that you are subject to paying closing costs. In general, it all comes down to the state and geographic region and time of year of closing. Overall, sellers will usually pay the real estate agents’ commissions at closing, leaving the buyer to pay for the loan-related expenses.
Whether you are buying a home for sale in Massapequa, or selling one, you will want to be aware of what closing costs are! So, we hope that this information has been helpful for you.
Would you like to work with a real estate agent in Massapequa to buy or sell your own home with? If so, please take a moment to get in touch with us here at Kim Holland Homes, as we are all set to be yours!