What Are Closing Costs?

Dated: 10/15/2019

Views: 127

When you buy a home in Vero Beach, whether you use a VA loan or any other type of financing, you will most likely be responsible for paying closing costs. You may not need to pay all of your closing costs directly out of pocket. In some cases, buyers can even negotiate with sellers for “credit” toward closing costs.

So what are closing costs, and what goes into determining the amount you will have to pay?

What Are Closing Costs?

Closing costs include all of the fees you incur as part of obtaining a mortgage. These fees can include:

·         A fee for checking your credit

·         A loan origination fee (this is the fee lenders charge for processing loan paperwork)

·         Appraisal fees

·         Escrow deposit

·         Inspection fees

·         Prepaid expenses, such as homeowners insurance and interest that is due before your first payment

·         Recording fee (paid to the city or county for recording new land records)

·         Taxes

·         Title insurance

·         Underwriting fee (this is the fee lenders charge for evaluating a mortgage loan application)

How Much Are Closing Costs?

Usually, buyers pay between 2 and 5 percent of the home’s purchase price in closing costs. Fine line, lenders have to give you a good faith estimate, or GFE, that reflects how much closing costs will be within three days of your loan application. However, the good faith estimate can legally change by up to 10 percent.

Can You Avoid Paying Closing Costs?

In some cases, such as those that involve VA loans, buyers can avoid paying some closing costs. Sometimes, you can obtain are no closing cost mortgage—but remember, these types of mortgages can end up costing you more money in the long run. Finally, you may be able to negotiate and get the seller to pay your closing costs.

Are You Buying or Selling a Home in Vero Beach?

If you're considering buying or selling a home in Vero Beach, we're here to help. Check out our: 

You can also get in touch with us to learn how we can aggressively market your home to all the right buyers. We can help you sell it quickly - and at the right price - so call us today.

 

Blog author image

Chip Boyer

Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....

Latest Blog Posts

Surf Shops in and Near Vero Beach

If you're a surfer buying a home for sale in Vero Beach, you'll be glad to know there are several great surf shops in the area. Here's a quick run-down so you can find one that meets your needs.Surf

Read More

3 Great Beach Parks in Vero Beach

If you're buying a home for sale in Vero Beach, you'll be glad to know that there are several great beach parks in the area - and these are three of our favorites.3 Great Beach Parks in Vero

Read More

The Vero Beach Museum of Art: Everything You Need to Know

The  Vero Beach Museum of Art is a spectacular place to spend an afternoon - and if you're buying a home in our beautiful community, it's definitely worth a visit. Check out this run-down

Read More

3 Great Coffee Shops in Vero Beach

Have you recently moved to the Vero Beach area? Even if you’ve already been here a while, there’s so much to do that sometimes the little treasure here can get lost. If you’re like

Read More