What are Closing Costs?


Another question I’m asked about is Closing Costs. When purchasing or planning for a purchase involves several items to consider and prepare for. One is the Down Payment (which will be covered next week), secondly is your Closing Costs. Buyers absolutely need to understand Closing Costs, because they will be paying them when you purchase a home.
It is also imperative for the Seller to understand closing costs, because you will probably be asked to pay for the Buyer’s Closing Costs; at least a portion of them.
Closing Costs are broken into Recurring and Non–Recurring closing costs.
We will first discuss:

Recurring Closing Costs. Recurring means will occur repeatedly, such as property taxes, home owners insurance, MMI (Insurance) and association fees (if any).

Non–Recurring Closing Costs (one time fee/charge). Would include pre–paid interest, loan origination fee, escrow fee, lender title insurance, recording fees, notary (which can be costly today) and several other miscellaneous fees.

As a general guideline, Closing Costs run between 3 to 6% of the Sales Price. Look for our next edition covering Down Payments. Down payments are paid at the closing of escrow, but not considered closing costs, just purchase costs.

Another question I’m asked about is Closing Costs. When purchasing or planning for a purchase involves several items to consider and prepare for. One is the Down Payment (which will be covered next week), secondly is your Closing Costs.

If I can answer any additional questions, or help you get Pre–Approved, give me a call or e–mail:

larry@robertsonrealtor.com or Call: 909.983.2892

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