Closing costs are the fees and expenses associated with the final steps of buying a home. They are paid at the time of closing, which is when the title of the property is transferred from the seller to the buyer.
Here are some common closing costs and what to expect:
Loan Origination Fees: This is a fee charged by the lender for processing the mortgage application. It typically ranges from 0.5% to 1% of the loan amount.
Appraisal Fees: This is a fee paid to the appraiser to determine the value of the property. It typically ranges from $300 to $500.
Title Search and Insurance: This fee covers the cost of researching the property's title to ensure that there are no liens or claims against it. It also includes the cost of purchasing title insurance to protect the buyer in case any issues arise in the future. This fee typically ranges from 0.5% to 1% of the loan amount.
Home Inspection Fees: This is a fee paid to a home inspector to inspect the property and identify any issues that need to be addressed. This fee typically ranges from $300 to $500.
Property Taxes and Insurance: The buyer is typically required to prepay property taxes and insurance at closing. The amount of these fees depends on the location of the property and the value of the home.
Attorney Fees: This is a fee paid to an attorney to review the closing documents and ensure that everything is in order. This fee typically ranges from $500 to $1,500.
Recording Fees: This fee is paid to the local government to record the transfer of the property from the seller to the buyer. It typically ranges from $25 to $250.
In general, closing costs can range from 2% to 5% of the purchase price of the home. However, the exact amount will depend on a variety of factors, such as the location of the property, the type of mortgage, and the lender. It's important to factor in closing costs when budgeting for your home purchase to avoid any surprises at closing. Your lender and real estate agent can provide you with a detailed breakdown of the closing costs associated with your home purchase.
Christa Burgess has been helping clients move in and out of the Katy Texas real estate market since 2004. Call Christa Burgess today with any questions, she is always happy to help!
Christa offices in Cinco Ranch and can help you with any and all real estate questions concerning the Houston market.
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