Closing Costs for the Buyer

Your closing day will be one of excitement. Be sure you know what’s expected of you before you go.

Houses for Sale – Bailey’s Crossroads Virginia: When you have chosen your home and the deal is about to be closed, you’ll need to know what you must bring to the final, or closing, meeting. This is where the signing of the papers occurs, making you the owner and allowing you access to your new home.

The cost of the loan and your down payment aren’t the only things you’ll be expected to pay. You may have other fees to pay and you must know what those are before you go to the closing. Fees to look for might include surveyor’s fees if one was done on the property, the title company’s charges for their services, the recording fees charged by the county who will register the transfer of property and the deed, and fees charged by your lender for their handling of the paperwork.

This information can be gathered by asking your lender for a ‘good faith estimate.’ If they don’t give you one, you should definitely ask for one. If the costs are prohibitive for you ask the lender about rolling the closing costs into the cost of the mortgage. If the closing costs come to $3k or $4k, which can happen, you would easily be able to make this up by spreading it out over 30 years in the mortgage. If your loan is $145k, for example, your new loan amount would become $148k if you added in the $3k closing costs.

Since this is a buyer’s market for real estate transactions, the seller may offer to pay the closing costs. Many sellers are offering this as an incentive to prompt buyers to buy their property rather than another house down the street. With so many houses to choose from, sellers may agree to pay your closing costs for you. When you make your offer on the house, include the closing costs in the terms you’d like to have. You may be surprised to learn that your seller will indeed take care of that for you. You won’t know, however, unless you ask.

In some cases, lenders pay the closing costs for you.

Some lenders will pay the closing costs, especially if rolling them into your mortgage loan will put you over their loan to value criteria amount. You may have to pay a slightly higher interest rate in return, but at least you’ll be relieved of the large lump sum closing costs. Another perhaps less attractive solution is to ask a family member to help you with the costs.

Our Fairfax team specializes in finding creative solutions to real estate problems that others won’t touch. It is through this collaboration that we can provide you with rock bottom priced homes and motivated home buyers and investors from around Northern VA. We will work to make your home purchase and sales processes as easy as possible, while providing you with the most up-to-date information of your transaction process as it develops. Lee Allen Team works to preserve the dream of home ownership for those who are experiencing the financial and emotional duress associated with unwanted or financially unstable property. We know what our business is; we know what we do well, and we believe that we are the best possible solution for people caught up in circumstances beyond their control.

Tagged with: closing cost

Filed under: House Buying Tips

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