Closing costs can often become a bit of an afterthought when purchasing a new home. In a competitive real estate market like the one we are currently in, buyers spend a lot of time and effort searching for the right property and simply getting an offer accepted. The good news is that a little bit of prep work can help make closing costs an easy final check mark on your list.
We always want to make sure our clients at Mortgage Maestro Group know how their closing costs are going to be divided up before it comes time to sign on the dotted line. This means you get to spend more time focused on moving and setting up your new living space, and less time worrying about financial red tape.
“Closing costs” is an umbrella term that includes most of the final fees that are incurred when purchasing or selling a home. These costs include money owed for taxes, insurance premiums, underwriting, credit reports, appraisals, attorney fees (where applicable) etc. (Closing costs do not include some standard fees like down payment). They also can include associated costs for services that may or may not need to be secured like surveying, repairs and inspections. In the United States average closing costs are approximately $6,000 ( but can be higher depending on the state you live in). Our goal at Mortgage Maestro Group is to keep these costs as low as possible, and provide our clients with a straightforward estimate along with education and a review of the costs for you. Our mortgage application process is incredibly easy to use and includes quick and simple descriptions of these costs. We are able to offer better rates on these standard fees than traditional lenders due to being a mortgage broker and working directly with wholesale lenders on your behalf. So the only costs you pay are pass through costs to close your loan.
WHO PAYS WHAT?
In most situations (especially in a competitive market), closing costs are incurred by the homebuyer. Although a seller may offer to cover some costs. A standard example is homeowners insurance. Closing costs would usually include the first year of your homeowners insurance. Six months worth of property tax paid by a buyer is also standard for most closings. Though this varies by time of year for your closing. Obviously the party selling a property would not be responsible for these closing costs, since they will be out of the picture after the sale. Some fees that are common in real estate transactions and equally affect both parties, such as certain escrow fees, can be split 50-50. Though this truly depends on your real estate contract. Whenever possible, Mortgage Maestro Group limits the fees you can expect to pay to lenders as much as possible, and our employees are skilled at helping our clients reduce incurred costs throughout the process. Want to learn more? Call the Mortgage Maestro Group team today at 303-779-0591.