11:37 AM
Swee Ng
What is Closing Cost?
Posted on July 8, 2014When you get a mortgage to buy a house or Sell a house in Phoenix, Arizona, you will need to pay Closing Cost. For Buyer, Closing cost are fees – charged by lenders and third parties - related to the purchase the home on top of down payment and principal and interest. Most of the time, the Home Buyers to pay the Closing Cost. However Buyers and Buyer's agent can negotiate with the Seller to pay. Some loans such as VA loan, seller to pay portion of the closing cost. Closing Cost are paid in closing of escrow.
What are the charges in Home Buyer Closing Cost?
Closing Cost often include:
- Down payment
- Credit Report fee
- Inspection fee (Home, Termite)
- Loan Origination fee, which lender charge for processing the loan
- Appraisal fee required by lender
- Underwriting fee
- Discount Point, which upfront fee you pay to lower interest rate
- Lender Title Policy
- Recording fee, which pay to the county to record the purchase
- Private Mortgage Insurance (PMI)
- Prepaid interest, property tax, HOA
- Home Warraty
- Hazard Insurance also refer as Homeowner Insurance
- and Others
For Home Buyers, the Closing Cost typically range between 2 - 5% of the purchase price. If your home cost $200,000, you might pay between $4,000 - $10,000 in Closing Cost.
How can Home Buyer avoid or lower Closing Cost?
Home Buyer and Buyer Agent can negotiate with Seller to pay all the closing cost or portion of it. Sometime, Home Seller will agree to assume the Home Buyer's closing cost. Home Buyer also can negotiate with Lender. Learn more on How to Buy a House with Low Down Payment.
Skilled Negotiations Can Save You Money
It is very important to work with a Realtor with experience negotiating. We can negotiate for all closing costs to be paid by the Seller. This keeps more money in YOUR pocket. If you qualify for a VA loan, we can negotiate terms which require no money down. Contact us today to find out what other negotiation strategies we can put to work for you!
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- Call 480.721.6253 or Contact Us to schedule a Complimentary & NO OBLIGATION Buyer Consultation
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Call 480.721.6253 today for complementary consultation. Buyer's Representation Services (NO COST TO HOMEBUYERS)
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