Buying Your Home - Escrow & Closing Costs
How can I save on closing costs?
Studies show that the closing
costs, which can average about 2%-3% a total home purchase price, are
often more costly than many buyers expect. This is in addition to the downpayment required by the lender. But there are some ways to save:
Negotiate with the seller to pay all or part of the closing costs. The lender
must agree to this as well as the seller. If the seller will not pay closing cost, you may be able to increase the loan to cover closing costs, if they home will appraise.
Who pays the closing costs?
Closing costs are
either paid by the home seller or home buyer. It often depends on local custom
and what the buyer or seller negotiates.
What are closing
Closing costs are the fees for services required that surround the purchase of a home. They include attorney fees, title insurance, survey, document fees, prepaid interest
and property taxes, etc. Unless, these charges are rolled into the loan, they must be
paid when the home is closed. Your lender and Realtor will go over these expenses prior to you looking at homes.
Why do I need a title report?
A clear title
report ensures there are no liens placed against the prior owners or any
documents that will restrict your use of the property. If there are liens, they will need to be cleared by the seller prior to settlement.