How Do You Determine Real Estate Closing Costs?
You’re buying a home, but the real fun begins once the owner accepts your bid. You must prepare for the closing. You may want to determine closing costs so you’re not blindsided by charges you aren’t aware of. With some research and talking to the right people, you can make a list of the fees and charges usually due at closing, which helps you determine your closing costs. Determine if you’re paying points on your mortgage. Paying points is a way to lower the lender’s interest rate. Each point equals one percent of the loan amount. You must pay these points at closing. Find out how much the appraisal fee is. The appraisal fee is a charge your mortgage company paid to have the property appraised to make sure it’s worth more than what you’re borrowing. This fee is added into closing costs. Talk to an insurance agent to determine the cost of the title insurance. A title on a house needs insurance to avoid future unauthorized claims on the home. This is another fee that’s due at closing. G
