I am getting into a phase where I am about to purchase my first home and I'm 23 yrs old. I keep hearing people talk about closing cost. Forgive me if his sounds dumb but I am new to this. What are closing cost? Is that the same as deposit or down payment? HELP!!!
2006-10-12 15:59:44 · 7 answers · asked by missadrian05 2 in Business & Finance ➔ Renting & Real Estate
see if this link can help you understand better
http://en.wikipedia.org/wiki/Closing_cost
2006-10-12 16:04:01 · answer #1 · answered by Big R 6 · 0⤊ 0⤋
The current average for selling a home is 18%+ of the cost is added unto the price for assorted items:
Real estate fees - currently running around 6%
Home inspection - depending in location, about $400.
Escrow fees
Title insurance which says the property is really there and not really someone elses.
Loan fees.
Recording fee to register the property w/ city/county.
Taxes till next collection date.
If you are paying less than 20% down, home insurance fees.
Your offer on the house can include "Seller to pay closing costs or x#." Your realtor can help you decide how much.
Whoever pays for the home inspection owns it. So that costs should be yours so you can insist on corrections.
Congratulations. May peace abide with you.
2006-10-12 17:06:24 · answer #2 · answered by Joe Cool 6 · 0⤊ 1⤋
closing cost is the cost you will pay to prepare and close your deal. you see went you are going to purchase a property there are many parties involve in the transaction and they all charge a fee for the service they provide, in southern California the closing cost is about $1,500. and all other fees to prepare and close you dial. but sometimes when you are purchasing a property the seller also helps with any or part of the closing cost. the down-payment you give is deducted from the property total value. and is good to bring your LTV down ltv is the difference to the home value to whatever your loan is.
2006-10-12 16:57:15 · answer #3 · answered by carlos0935 1 · 0⤊ 0⤋
No, closing costs are seperate from the purchase price of the house, you can sometimes finance them into your loan though. Most closing costs consists of the bank fees, one years worth of insurance some banks require, and any transfering and title fees. Usually you can look at about 1500 to 2500 in closing costs.
2006-10-12 16:03:15 · answer #4 · answered by stephaniencurtis 2 · 0⤊ 0⤋
Things like a bank's mortgage application fee, state filing fees, prepaid tax and insurance, inspection cost, and several other things. Figure on needing as much as 5% of the purchase price.
2006-10-12 16:03:15 · answer #5 · answered by Knowledge 3 · 0⤊ 0⤋
The reason you are getting so many different answers is because closing costs are different in different states. Why don't you attend a free class or seminar for first time buyers in your area? They are usually free and it's well worth your time.
2006-10-12 16:26:39 · answer #6 · answered by Anonymous · 1⤊ 0⤋
no its what you pay the loan officer, title,escrow and a county to do your loan.
each state has rule about how much they can charge you.. any where from 5-10% of the loan amount
2006-10-12 16:05:59 · answer #7 · answered by areyoureadyb? 2 · 0⤊ 0⤋