When buying a home in Chico, Lake Almanor, or anywhere else, you know you should expect to have a certain amount of money saved for a down payment. But have you stopped to consider how much you’ll need to have set aside for closing costs? Here we’ll break down the fees associated with closing on a home.
In a nutshell, closing costs are those fees charged by third parties who are involved with the sale of a home. These can include your lender, the title company, local government offices and land surveyors. While closing costs can vary significantly from location to location, you can expect to pay up to five percent of the home’s selling price in additional fees.
In general, both buyers and sellers are responsible for paying the closing costs. However, buyers typically pay a larger percentage than sellers – around three percent. While most of the fees are paid during closing, some are paid upfront, such as the inspection fee.
The fees associated with closing can vary depending on where you live, but these are some of the costs you’ll most likely encounter:
When your lender provides you with a loan estimate, they will also include what your closing costs are expected to be. However, understand that these numbers are an estimate and can change. You can also check out this online calculator that will help you determine what your closing costs may be. Before your closing date, your lender will give you a Closing Disclosure statement, which will outline what the final closing costs will be.
Compliments of Coldwell Banker DuFour Realty. Residenital Real Estate, Commercial Sales and Leasing,