When it comes to the purchase or sale of a home, there can be some out-of-pocket expenses involved. For example, as the buyer, you will typically need to come up with a down payment, as well as various fix-up and moving related costs. Even as a seller, you could have to reach into your pocket to pay for items like cleaning up, repairing, and / or staging your home so that it looks its best to potential purchasers.
But there are other expenses that buyers and sellers may not necessarily be aware of. These are closing costs – and depending on the situation, these costs can oftentimes add up.
What exactly do closing costs include?
While they can vary from one situation to another, closing costs will generally include the following:
- Credit report
- Home inspection
- Pest inspection
- Title insurance
- Title search
- Document preparation
- Attorney fees
- Flood determination
- Recording fees
- Transfer tax
- Mortgage insurance
- Prepaid interest
- Property taxes
- Prepaid interest on the mortgage / points
Although some of these items may be paid directly by the buyer or the seller prior to the day of closing, many will be paid for at the actual closing table.
In order to know the exact amount of closing costs on a home that you are buying or selling – as well as who is responsible for paying each of these items – you will receive a settlement statement prior to the day of closing.
Have any additional questions about closing costs, and what you can expect when you go to buy and / or sell a home? If so, we can help. Give us a call and we’ll be happy to walk you through more details. In addition, we will also provide you with a no cost, no obligation home valuation so that you know what your current property is worth.