when you buy a house. Waht is the closing fee. Is it added to your loan, or can it be?

Question

we just made an offer on a house and no one has said anything about a closing fee, but today someone asked us how much our closing fee was.

Answer 1

It's very common for the buyer to require the seller to pay all or some of the closing costs. Your real estate agent should be able to tell you about this. It's part of the negotiations.

If you made an offer without including it, you may end up paying them. The closing costs are the fees the agents get. Usually a percentage.

There are other fees that come up during the closing, including lawyers fees etc. Make sure your agent tells you all this, ok?

Answer 2

You need to have a talk with your Realtor. When you make an offer on a home there are specific parts of the contract that discuss fees that either you (the Buyer) or the home owner (the Seller) will have to pay. This of course, if the contract is agreed to by both sides. When you make an offer, you are supposed to go over the contract so you can understand what exactly you are signing. Furthermore, it is good practice to provide clients with a NET OUT sheet which basically explains an estimate of costs to be paid be each side of the transaction. This way you can go to the Closing Table knowing about how much you will need to bring. You can always roll these closing costs into the loan but that must be discussed with your Loan Officer. Your Loan Officer (or Mortgage Broker/Lender) can and should also give you a "Good Faith Estimate" which will be similar to the NET OUT your Realtor should give you but with your expected monthly payments and amount you are to estimated to bring to the closing table.

Hopefully you have money set aside for this situation because typically you will be expected to bring a few thousand to pay for closing fees. If this wasn't explained to you, and your not prepared, I'd have a real good talk with whom ever is representing you.

Answer 3

Closing fees vary and in the contract you can specify that the seller pay 1/2 or all of some of these fees. Sometimes you can get them back at closing provided the house appraises for more than you are paying that can be arranged but you still have to have some fees up front.

Answer 4

It's not just A closing fee, but rather several closing costs-- they add up to around 3% of the home's cost.

Some of them:
*Prepaid Interest (your lender will ask you to pre-pay the interest from the closing date to the first of the following month. So if you close February 20th, you would pay 8 days of prepaid interest, and then your first payment would be due April 1st and would cover march's interest.)

*Prepaid Taxes/ home owners insurance (if you plan to have your lendor collect this on a monthly basis, they require some of it prepaid to get you started. This way you never have to worry about paying your insurance or taxes).

*1 year home owners insurance premium. (usually required to be paid at closing!)

*Title Insurance (often around $500-600 in my area)

*closing fee (often around $500-600 as well)

*any lender fees such as appraisal fees, flood determination fees, underwriting fees, originiation fees or discount points, etc.

You can make an offer and ask the seller to pay your closing costs (you just specify an amount.) If a home were listed at $200K and you wanted to offer full price, you'd offer $206,000, with the seller to pay $6,000 worth of closing costs.

Hope this helps!

Answer 5

Offer 5K less for the home and roll the fee's into your home!

Answer 6

Have the seller pay it. Do not add it to your loan.

Also check this web site out.
http://www.breakingbubble.com/

Best of luck

Answer 7

I agree get buyers to paid that don,t it to your Loan Good luck on your new home my best to you