![]() It’s typical to make an earnest money deposit when you put an offer in on a home. Note: Earnest money is not technically considered a closing cost (nor does it factor into a buyer’s 2% to 5% range), but it plays an important role in your total payment on closing day. If you are getting a flood zone certification or land survey, you’ll also pay for these at the time of service, though sometimes the cost is shared with the seller. It’s usually up to the buyer if they want to add an inspection contingency. Home inspections are usually completed within a week of your offer being accepted and are paid for at the time of service. However, there are some closing costs paid before closing day, such as inspections, certifications or land surveys. Money is typically wired to the receiving parties upon closing, or the buyer will bring a cashier’s check to the closing appointment. Most closing costs are due on the day of closing, which is the point in time when the title of the property is transferred from the seller to the buyer. For sellers, it comes down to what you’ve negotiated in terms of concessions and agent commission. For buyers, it depends on your loan program, size of loan and individual lender practices. On a $300,000 home, that’s between $24,000 and $30,000.Ī lot of factors impact how much you’ll pay in closing costs. On average, sellers pay roughly 8% to 10% of the sale price of the home in closing costs - the majority of this cost is made up by agent commissions. Seller closing costs are typically higher. For example, if the home costs $300,000, you might pay between $6,000 and $15,000 in closing costs. How much are closing costs?īuyer closing costs are usually between 2% to 5% of the home’s purchase price. ![]() There are various types of closing costs, with most being paid by the buyer, but some being paid by the seller. Some are paid to your lender, and others to third parties such as appraisal, inspection, and title companies, in order to finalize and fund your loan. What are closing costs?Ĭlosing costs are fees associated with your home purchase. Note, that if you’re selling, most of your closing costs are related to real estate agent commissions, though the buyer may ask you to cover some of their closing costs as part of the negotiation. Some fees are related to the property itself, while others are required to close and fund your loan. As a buyer, you’ll also be responsible for a range of fees that cover services and ensure a smooth transaction. Budgeting for a home purchase is more than just accounting for your down payment. ![]()
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