Friday, February 17, 2017 / by Tom Nickley
What Are Closing Costs & Who Pays Them?
What are closing costs and who pays them?
Closing costs are fees associated with the closing of a real estate transaction. Closing is when the title gets transferred from a seller to a buyer, and closing costs are incurred by both the buyer and the seller.
As a buyer, you will be responsible for loan origination fees, title transfer fees, documentation stamps, surveys, tax stamps on your mortgage, and title service charges. Things like taxes, insurance, and HOA prorations are known as pre-paid.
" Closing costs are incurred by both the buyer and the seller."
Buyers can expect to pay 2% to 5% of the purchase price of the home in closing costs.
Closing costs for sellers are a little bit different. As a seller, you are responsible for prorate taxes until the day of closing, owner title insurance, documentation stamps, municipal lien searches, title service charges, and commissions.
If you have any other questions about closing costs or about real estate in general, give me a call or send me an email. I would be happy to help you!