If you are buying a home you, no doubt, cannot wait for the day when the title and keys are handed over to you. This is known as the closing. But, you will also be required to pay various fees known as closing costs. These costs can really add up, in fact they average around two to four percent of what you pay for the home. What exactly are you paying for with these closing costs? Here are a few examples:
When buying a home from someone, it’s necessary to make sure the person selling the property legally owns it, and that there are not pre-existing liens, so a title search is carried out. It’s a good idea to obtain purchase title insurance as this will protect the buyer from any mistakes that may occur from the results of the title search.
An appraisal has to be carried out on the property to see what the value of it is. This is so that the money being lent is not more than the property is actually worth.
If the home being purchased is part of a HOA neighborhood, you will need to pay up front for the rest of the years fees. Property taxes will also need to be paid.
You will also need to have a home inspection performed on the property to ensure it is structurally sound and to make sure there are no hidden problems with the home.
While these are only a few of the closing costs that you will have to pay when buying a home, it’s good to have an idea ahead of time of what is involved when purchasing a home, especially if you are a first-time buyer.
When buying a home from someone, it’s necessary to make sure the person selling the property legally owns it, and that there are not pre-existing liens, so a title search is carried out. It’s a good idea to obtain purchase title insurance as this will protect the buyer from any mistakes that may occur from the results of the title search.
An appraisal has to be carried out on the property to see what the value of it is. This is so that the money being lent is not more than the property is actually worth.
If the home being purchased is part of a HOA neighborhood, you will need to pay up front for the rest of the years fees. Property taxes will also need to be paid.
You will also need to have a home inspection performed on the property to ensure it is structurally sound and to make sure there are no hidden problems with the home.
While these are only a few of the closing costs that you will have to pay when buying a home, it’s good to have an idea ahead of time of what is involved when purchasing a home, especially if you are a first-time buyer.
RSS Feed