�־��ֱ��’s Advanced Closing Cost Calculator

Question 1

What are Closing Costs?

Accepted Answer

Closing costs are a list of expenses that buyers and sellers have to pay to close the real estate transaction. These fees could include the broker’s commission, real estate attorney fees, title insurance, taxes, lender costs, the title search, the HOA, transfer or recording taxes, and other miscellaneous fees such as the lender’s fee.

Question 2

Who Pays Closing Costs?

Accepted Answer

Both the buyer and seller pay the closing costs. Some are negotiable but others are non-negotiable like taxes charged by your state or local jurisdiction. Although a buyer has to pay 2% to 5% of the property’s purchase price, sellers have to pay more on several fees, especially on the agent’s commissions which can be as high as 6% of the home sale price.

However, with �־��ֱ��’s Flat Fee MLS packages, a home seller can save 3% of agent commissions!

Read our article on how to list on MLS as a For Sale By Owner and save thousands of dollars that you’d rather pay out as agent commissions.

Question 3

Do I have to pay closing costs?

Accepted Answer

Yes, you will have to pay closing costs whether you buy a home or refinance. Most of the closing costs fall on the buyer, but the seller typically has to pay a few, too, such as the real estate agent’s commission.

Question 4

Does earnest money go towards closing costs?

Accepted Answer

If Earnest Money is involved in the transaction then it is held in the escrow account. It is later added to the down payment and closing costs of the buyer.

Question 5

How to reduce closing costs?

Accepted Answer

An important point to note is that the closing costs cannot be completely waived but they can be reduced.

Some of the ways to do this are:

Find a lender with low closing costs
Check loan estimate
Negotiate with the lender
Ask sellers to bear some of the closing costs
Minimize prepaid interest charges
Save on points
Skip if there has been a recent appraisal and inspection

Apart, sellers can save on listing agent commission by opting for Flat Fee MLS platforms like �־��ֱ��.

Question 6

How Much Are Closing Costs on a House?

Accepted Answer

The average closing costs on a home purchase usually range from about 3%-5% of the total sale price of a new home for buyers and 8%-10% of the total sale price for the sellers.

Question 7

Are there closing costs when you sell a home for sale by the owner?

Accepted Answer

Yes, there are closing costs if you sell your home For Sale By the Owner. Title insurance, recording fees, title processing fee, transfer tax, are a few examples of the fees you can face.

When you are listing your home for sale by owner, choosing a flat fee MLS listing service can be the best choice to save on realtor commissions.

Question 8

What other closing costs and fees will I have to pay?

Accepted Answer

As a buyer, you will have to pay all or a few of the following closing costs �� appraisal fee, home inspection fee, application fee, assumption fee, attorney fee, prepaid interest, origination fee, discount points, mortgage insurance application fee, upfront mortgage insurance, FHA, VA and USDA fee, property taxes, upfront HOA fee, homeowners insurance fee, title search fee, lender’s title insurance, and owner’s title insurance fee.

Question 9

Is Inspection part of closing costs

Accepted Answer

Yes! Home Inspection forms a part of the closing costs for both sellers and buyers based on negotiations.

Question 10

How to calculate closing costs?

Accepted Answer

Multiple real estate websites have started including closing costs calculator to aid sellers and buyers. The data for various components is pre-fed. A seller or buyer only needs to enter details like location, sale price, mortgage amount, down payment rate, etc. and the closing costs calculator will give you the required closing costs estimate.

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