What Closing Costs Are Home Buyers Responsible For?
Admin • October 15, 2021
Buying a house can be an exciting opportunity, but it also comes with a range of associated costs, including closing costs when you finally make the purchase. While the costs associated with buying a home may seem minimal compared to the actual price, they can add thousands of dollars to the final amount. If you’re shopping for your new home, learn more about what closing costs to expect below.
What Are Closing Costs?
Many of the costs associated with title closing are related to financing, which are typically paid by the buyer. Alternatively, some other expenses, like real estate commissions and attorney’s fees, are traditionally the seller’s responsibility.
While these costs are normally divided between the buyer and seller, they’re powerful negotiating tools. Depending on the terms of your agreement, the seller may agree to deduct some costs from the selling price in exchange for fewer contingencies or other concessions. Before committing to the initial closing costs, you can see if there is any room to negotiate a lower rate.
What Standard Closing Costs Can Buyers Expect?
Mortgage Fees
Buyers are typically responsible for all the fees associated with obtaining a mortgage, including origination points, application costs, and broker’s fees. These expenses can equal 2% of the price of the house or even more. Some Loan programs may allow you to add these expenses to the balance of the mortgage.
Title Insurance
Owners Title insurance protects the buyer from defects in the title, such as claims or liens that may come up after closing . Without insurance, you could be responsible for settling these claims, even if you weren’t aware of them at closing. If your lender already requires lender's insurance, you could get a reduced rate when purchasing both Lender's and Owners at the same time.
If you're preparing to buy a home, reach out to All Points Title & Closing in Hamilton, OH. Since 1966, they have simplified the real estate process for first-time buyers throughout Ohio and northern Kentucky. Their experienced staff has the expertise to guide you through every step of the transaction and ensure you understand the closing costs you’ll be responsible for. Visit their website or call (513) 863-7600 to contact an agent.
For purchasers in the market for new real estate, the search can be derailed by outstanding property liens. Any liens found during the title search can usually be paid off through the closing. However, obtaining payoffs may take some time to obtain. Here are several liens that are commonly attached to a residential or commercial property. 4 Property Liens Investors Need to Know 1. Property Tax If a homeowner or commercial building owner fails to pay property taxes, a tax lien can be sold or a tax foreclosure could commence. . In some cases, the lender may pay the balance due and that amount is added to the mortgage payment. 2. Contractor/Mechanic General contractors can also place a lien on a property that they performed work on, if the homeowner failed to pay the bill. The same is true for mechanics who did repairs but the customer didn't pay for services. In both cases, there is a time frame during which the lien can be filed. 3. IRS OR STATE LIENS Failure to pay back federal or State taxes can also result in a lien on real property, which will need to be paid off through the closing. 4. Child Support A parent who is owed a significant amount of child support can use a property lien as a tool to collect from the non-compliant parent. The lien may be lifted if the child support arreage is paid in full. If the property is sold or refinanced, the parent who placed the lien can also arrange to recoup the support owed. Since 1986, All Points Title & Closing in Hamilton, OH, has provided guidance to investors who have faced lien issues on interested properties. Serving Ohio and Northern Kentucky, the team of licensed title agency professionals conduct extensive title searches to eliminate any surprises before closings. From title insurance to escrow services, you can also count on them to make your home and commercial building sales efficient and seamless. To learn more about liens and how the agency can help you, call (513) 863-7600 . Visit the website for more information on their title and closing services.
Purchasing a home is a complex process, and there are many steps involved, including house closing . This is the precursor to obtaining ownership, and it’s important that you understand the costs involved before you sit down to finalize the deal. Closing costs specifically refer to the fees associated with the many services that others have done during the course of your home-buying journey, including the mortgage lender and real estate lawyer. Here’s what you should know about what you can expect to pay. What Are Closing Costs? On average, with closing costs, you can expect to pay anywhere from 2% to 10% of your total loan amount. In addition to paying the mortgage lender, other professionals associated with your purchase also charge fees. They include the title company, the home appraiser, and any other third party that may have a hand in both arranging and closing your mortgage. What Is Included in Closing Costs? House closing fees are itemized, but it’s a good idea to become familiar with what you’re paying. A portion of the loan amount goes to the broker's fee, which is what the lender charges for their work. Mortgage points account for another portion, and they’re paid upfront if you wish to bring the cost of your mortgage down slightly. An underwriting fee is paid to the lender’s staff and is used to cover the work involved in collating documents and checking over the information before the loan is approved. The fees will fluctuate between lenders, so you will want to get a more accurate list from the lender you plan to use. You’ll also pay fees for the title search and title insurance, which are important for ensuring there are no liens on the property before ownership is transferred. There are also fees associated with the home’s inspection and appraisal. It’s customary for buyers to pay at least six months or a year’s worth of property taxes and homeowners insurance. If you’re embarking on a real estate journey, it’s important to have a reliable title company on your side. That’s why so many people throughout Hamilton, OH, trust in the team at All Points Title & Closing . Proudly serving the community since 1986, they offer assistance through the house closing process to ensure that you are protected every step of the way. Visit the website for more information, or call (513) 863-7600 to speak with a representative.
Buying your first home is an exciting adventure, but it also comes with a lot of new terms and concepts you may not be familiar with, such as an escrow account. Escrow is a vital part of any real estate transaction and protects the financial interests of both buyers and sellers. If you’re purchasing a home, understanding the importance of escrow will help you navigate the process and reduce the risk of common mistakes. Below is an overview of how escrow works in a real estate transaction to help you understand how and when it's necessary. What Is Escrow? During real estate transactions, most states require funds to be held by a neutral third party until the sale is complete. Earnest Money can be held by the real estate broker firm, title company or anyone that the buyer and seller agree to. After signing the sales agreement, buyers will transfer their earnest money into escrow. Any additional money that will change hands at closing , like the down payment and/or closing , will also be held in escrow until the transaction is finalized. The escrow holder will then only release the funds when certain conditions have been satisfied. For instance, if the buyers back out of the sale, the money will be released to the buyer or seller depending on what the signed release of earnest money form states . Typically, all of the money held in escrow will go to their intended recipients when the sale is finalized. Why Is Escrow So Important? Escrow provides both buyers and sellers with confidence that the other party is acting in good faith. Sellers know that the buyers’ earnest money funds will be held until the transaction is closed, and lenders can act with confidence knowing that they’ll receive the insurance costs, mortgage payments, and other fees right away. Because the funds aren’t released until the title is transferred, however, buyers can also feel more reassured that they aren’t being scammed. If the title company discovers that the seller doesn’t have the right to sell the property, buyers will easily be able to get their money back with a release of earnest money form signed by all parties. If you’re buying a home anywhere in Ohio or northern Kentucky, All Points Title & Closing will guide you through the closing process with ease. In addition to thorough title inspections and closings, they’re also the escrow service of choice for brokers and lenders throughout the region. Visit their website or call (513) 863-7600 to schedule a consultation to discuss your sale.
ALL POINTS TITLE & CLOSING, INC., WISHES YOU AND YOURS A VERY HAPPY HOLIDAY SEASON AND BEST WISHES FOR A HAPPY NEW YEAR!
Purchasing a home is an exciting process and a major investment for you and your family. For that reason, it's important to do everything you can to safeguard your interests when officially closing the sale. As you start the house closing process, here are some tips to make it as smooth as possible. How to Prepare for a Home Closing 1. Address Contingencies in the Purchase Agreement Your purchase agreement is a document that outlines both the seller's and the buyer's responsibilities in the house closing process. These responsibilities are called contingencies and are essential for the property sale to go through. To make the contract official, you'll need to tend to the buyer's contingencies in the paperwork, such as scheduling a home inspection. At this point in the process, you can also request the seller repair any problems as a term of the sale, or you can offer to complete the repairs yourself in exchange for a lower overall price. 2. Create a Deadline for Repairs Some older homes may not be quite up to date for a new owner. If the seller has agreed to make repairs, create a timeline of when you expect the work to be complete. This should be at least a few days before the scheduled closing. On the specified dates, check to make sure the seller has finished the work. 3. Prepare Documents for the Closing Meeting On closing day, you'll meet with several individuals usually the seller, the closer for the title company and other parties involved in the process, that may need to be at the closing. You'll sign a series of important documents to purchase the property, including any loan documents, if you are getting a loan to help facilitate the purchase. You will also need to bring several materials to the meeting to complete the closing, including your photo identification, and any other documents you may want for reference. The closing usually takes around 30 minutes or less depending on the amount of questions that you may have. To protect your claim to your new property, contact All Points Title & Closing in Hamilton, OH. In business since 1986, you can trust the professionals to perform a thorough title search to determine whether there are any concerns that need to be addressed. Find out how the title professionals will help with your house closing online , and call (513) 863-7600 to get started.
All Points would like to wish everyone a very Safe and Happy Thanksgiving.
ALL POINTS TITLE & CLOSING, INC., will be closed on July 5, 2021, in observance of Independence Day which commemorates the Declaration of Independence of the United States on July 4, 1776. Please have a joyous holiday and celebrate safely.
ALL POINTS TITLE & CLOSING, INC., will be closed on July 5, 2021, in observance of Independence Day which commemorates the Declaration of Independence of the United States on July 4, 1776. Please have a joyous holiday and celebrate safely.
Whether you're transferring a down payment or putting funds into escrow, a secure wire transaction ensures your money safely gets to the title company . In recent years, though, there has been an increase in wire fraud from scams and compromised emails, which makes it more important than ever to protect your transactions. Below are a few steps to keep your transfers secure. How to Make a Secure Wire Transaction 1. Obtain a Safe Telephone Number Ask your title company what phone number you should use for the transaction. In most cases, this will be the number you used from your initial contact with them, but confirm with them first to be sure. Never use a number that was provided in an email without first checking with the title agency. Many email scams occur when scammers mimic the look and language of official emails, tricking recipients into transferring money to a wrong number. 2. Verify All Information Before Sending Money While on the phone with the title company, confirm that all the transfer information you have is correct. Review the bank routing number and account number with your regular contact before proceeding with the transaction. 3. Don't Change Wiring Instructions A title agency rarely has a reason to change wiring instructions in the middle of a transaction. If, during your preparations or the transfer process, you receive instructions with changes to the procedure, reach out to your contact at the title company before you accept the new instructions to avoid a fraudulent transaction. Turn to All Points Title & Closing in Hamilton, OH for a trusted title company that will walk you through the wire transfer process. They have been serving residents of Ohio and Northern Kentucky since 1966, and their title professionals will guide you from the initial title search to the final signature. Call (513) 863-7600 or visit them online to schedule a consultation.
The process of buying your first home is exciting, but it can also be overwhelming. You will likely hear a lot of new industry terms as you speak with real estate agents, lenders, and escrow and title officers. Knowing what they mean will help you know what to expect and have productive conversations with these professionals. What Are the Basic Real Estate Terms to Know? 1. CMA CMA, short for comparative market analysis, is conducted by your real estate agent. This report shows the prices of recently sold homes that are comparable in size, condition, and location to the home you're interested in. Your agent can run one of these before you submit an offer, so they can give you an accurate idea of the home's current market value. 2. Closing Costs These are the fees associated with completing a real estate transaction. Common closing costs include title fees, mortgage insurance, property taxes, recording fees, homeowners insurance, and lender fees. The split of these fees between you and the seller will be outlined in your purchase contract, and the amount will depend on the property you buy and the type of loan you take out. 3. Down Payment This is the money that you “put down” on the home, or how much you pay upfront. This is typically calculated as a percentage of the total purchase price. Your lender may require your down payment is a certain percentage, depending on your financial situation. 4. Escrow When you submit your offer, you'll give earnest money up front to show you're serious about the purchase. This money may be sent to a third-party escrow account, which holds the earnest money until the transaction closes. At the completion of the transaction, that money will be applied to your down payment or deducted from the total amount you owe at closing, and it will be shown as a credit to the Seller. 5. Title Insurance When you purchase a home, a title company searches the property records to look for any issues that would affect property ownership, such as mortgages, liens and levies. However, they may not find every problem. Issues such as filing errors or undisclosed heirs could create future problems. When purchased, title insurance protects the lender and you from issues that could come up later. These policies are usually paid for by the buyer, but can be negotiated in your purchase contract as to whether the buyer or seller pays for all, or a portion, of the policy or policies. When you're buying your first home, it's important that you work with a trusted escrow and title company to navigate the closing process. All Points Title & Closing has been serving the homebuyers of Hamilton, OH, since 1986. Their experienced agents will guide you through every step of the closing process. Get started on their website or by calling (513) 863-7600 .
