Let's Talk About Closing Costs When You Buy or Sell a Home in Lakewood
When you buy a home for sale in Lakewood or Long Beach - or when you're selling one - you're going to have to deal with closing costs.
But what are closing costs, who pays them, and how much are they?
Here's what you need to know.
Let's Talk About Closing Costs When You Buy or Sell a Home in Lakewood
Closing costs are the monies that need to be paid when a mortgage deal closes. Either the buyer or seller may pay them (up to a point). Sometimes it's possible for buyers to work out a deal, for example, that requires the seller to pay them out of the proceeds of the transaction; in other cases, the buyer may be able to roll closing costs into his or her mortgage.
What Are You Paying for When You Pay Closing Costs?
Closing costs are fees that go to a variety of people involved in the transaction. Yours might include:
- A loan origination fee, which is what lenders charge you for processing your loan
- A credit check fee
- An underwriting fee that the lender will charge you for checking your credit
- An appraisal fee
- Home inspection fees
- Title search fees
- Survey fees
- Private mortgage insurance, or PMI
- Discount points, which a buyer can pay to lower his or her interest rate in some cases
- Taxes on the money you're borrowing for the mortgage
- Document recording fees for the deed and mortgage
- Buyer's attorney fees
- Real estate agent commissions
How Much Are Closing Costs?
Usually, closing costs amount to somewhere between 4 and 7 percent of a home's purchase price. If you're buying a $500,000 home, for example, you might pay somewhere between $20,000 and $35,000 in closing costs. (Again, though, there are situations in which a seller can pay closing costs or when buyers can roll closing costs into a mortgage and pay them off with normal mortgage payments.)
Are You Buying a Home in Lakewood?
If you’re not already living in Lakewood, or if you are but you’re looking for a new home, we’re here to help. Call us right now at 562-882-1581 or start browsing our Lakewood real estate listings to find your dream home today!
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