Real estate closing costs can quickly add up for the buyer and the seller. Closing costs can include the cost of the land survey, broker’s fees, taxes, attorney’s fees, utility fees, homeowners association fees and inspection fees. The list can be much longer and the amount of the costs will vary widely. Get more information here about various closing costs and real estate transactions.
Closing Costs Too High For Many Home Buyers
Mortgage companies have made it difficult, if not impossible, to tell what's a true cost and what's a junk fee. Home buyers are being charged for things that should be included in the profit the lender is making. Lenders have tried to counter the closing cost discussion by introducing mortgages that are "zero closing cost."
Be Careful Using Power Of Attorney For Closings
A buyer could not make it to the closing of his new home and signed a Grant of Authority for the builder to sign the documents. There were many errors along the way and the closing did not happen. Ilyce and Sam explain who should get to have the authority to sign documents if you can't make it to the closing.
Negotiating Closing Costs
Shopping for a new mortgage can be confusing. You should ask what for an itemization of closing costs, because some of them may be negotiable. You may be able to close at the end of the month instead of at the beginning and cut down on your prepaid interest, but this only changes the cash you'll need at the closing and does not reduce your loan fees. Ask the lender to provide you with an estimate and make sure the closing costs are itemized so you can see what you're paying.
Research Overpayment Of Closing Costs
A homeowner purchases a vacation home in another state and has realized that some of the closing costs were paid by both the bank and the escrow company. Now the buyer is wondering if she was double billed, if it was an expensive lesson, or if she can get her money returned. Before the buyer accuses the lender of double-billing, she needs to make sure she understands the closing statement and fees and understands what she paid for at closing and what she paid for prior to closing.
Calculating Buyer Closing Costs
Buyer closing costs can rack up in a hurry. Here's a detailed look at all of the closing costs you might have to pay when you buy a home.
We updated this article June 2009, take a look at the updated closing costs for buyers.
Closing Should Include Tax Bill Discussion
What can you do if you receive property tax bills that were the responsibility of a previous owner? The title company who provided title insurance at the closing should be responsible for the costs. The title company certifies that a title is free and clear of all tax obligations at closing. All costs, including taxes, should be determined at closing.
Canceling A Loan Without Penalty
A closing date is moved several times and the borrower wonders if they can cancel the loan. Your purchase is governed by the terms of your purchase agreement. You must abide by the terms of that agreement or you risk being sued by the seller or losing your escrow deposit, or both.
Refinance If You Can Recoup Closing Costs Quickly
The old rule of thumb for refinancing was to wait until you could lower your mortgage loan interest rate by at least 2 percent. That refinance rule no longer holds true. The new way to determine whether the time is right to refinance is if you can recoup your closing costs within six months of the refinancing the mortgage loan.
Reserving Cash By Financing Closing Costs
Many lenders will allow you to roll your closing costs into your loan. And, many sellers will simply pay the closing costs of the buyer. These are both reasonable ways to help you pay your closing costs -- artificially inflating the sales price of the house may not be a good idea.
Builder And Lender Team Up For Mortgage Offer
Often new construction companies and builders partner with a lender. The only way to figure out if they are offering the best deal is to shop around to other lenders. Do your homework and research what the best lenders in your area are offering. Then, you can go to the builder's lender and negotiate the best deal possible.