We get a lot of questions about Real Estate in Santa Clarita. This week we’re answering your question what are closing costs?
A: Closing costs are fees associated at the closing of a real estate transaction. The closing point is when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.
Depending on where you purchase a home, and what type of property you purchase can depend on what type of closing costs may occur. Such as:
- Loan Origination Fee
- Discount points, which are fees you pay in exchange for a lower interest rate
- Any Inspection fees requested/ required by the lender
- Appraisal Fee
- Survey Fee
- Attorney Fee
- Title Insurance
- Recording Fee
- Etc.
Typically a buyer will pay between 2 to 5 percent of the purchase price of a home in closing fees. Lenders are required by law to give you a Loan Estimate, which will include what the closing costs on your home will be, within three days of receiving your loan application. But these are just an estimate, and many of the fees listed can change. At least three business days before your closing, the lender should give you Closing Disclosure statement, which outlines closing fees. Compare this to your Loan Estimate and ask the lender to explain what each line item on your closing costs is and why it is needed. Items can be negotiable.
If you are considering purchasing a home, but dont have a lender, please contact us here, or at 661-373-2374 to help you find a lender that will best suit your needs.
