Closing Costs Explained
Manage episode 182002484 series 1331864
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You've probably heard of closing costs before, but do you know what they actually entail?
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When you buy a home, there are some closing costs that you should expect and be prepared to pay.
Closing is defined as the time when the title is transferred from the seller to the buyer, and that's the time when these closing costs are paid. It typically runs about 2% to 5% of the purchase price, but it can vary depending on the loan type.
Closing costs typically include an application fee with the lender, an appraisal fee, interim interest, home inspections, attorney fees, and title insurance. You might also have to pay a credit certification fee and a flood determination fee to find out whether your home is in a flood zone.
Closing costs typically run about 2% to 5% of the purchase price.
All these payments are made at closing, but some can be paid in advance like your home inspections and appraisal. If so, you'll get a credit at closing for the amount you paid.
If you have any questions about closing costs, or you're thinking about buying or selling a home here in the Wilmington area, don't hesitate to give me a call or send me an email. I'd be glad to help.
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