Closing costs are the extra fees you pay after buying a home. During the closing stage, the property title is transferred from the seller to the buyer; and certain fees and taxes need to be paid for the purchase to go through. Closing cost is on average between six to three percent of the total price of the house; however, it is liable to change based on local, state, and national property tax rates.
Here are some examples of closing costs you’re expected to pay during closing:
- Property appraisal fees
- Real estate agent fees
- Loan origination
- Survey fee
- Cost of running a credit report
- Home inspection fees
- Cost of completing a title search
- Taxes on the home loan amount
- Document recording fees on the deed and mortgage
- Escrow deposit
- Mortgage points
- Attorney fees
- Private mortgage insurance (if required)
The person that pays the closing costs can be negotiated between the buyer and seller. However, the buyer will pay more especially when it comes to loan origination, loan taxes, and credit assessment.
How To Avoid Closing Costs When Buying A House
- Negotiate A No-Closing Costs Mortgage
To avoid paying closing costs, the first place to begin is with the lender. Sometimes, the buyer can negotiate a mortgage without losing costs. However, mortgage lenders have a way of getting their closing costs either by increasing the interest rate or adding the closing costs to the mortgage total cost.
- Negotiate With The Seller
For sellers, their closing costs include commission fees, loan payoff costs, and transfer taxes. Buyers can negotiate with the seller to pay closing costs. To make this work, some loans may permit sellers to take on these costs in the form of credit. This is a good way to close the sale of the house faster.
- Negotiate Origination Fees With The Lender
You can ask the lender for a fee reduction or credit to pay off some of your closing costs. When looking for a lender, ensure that they’re reliable and capable of providing a loan estimate after you’ve completed your mortgage application. This helps you examine the line items in the closing costs such as attorney and application fees.
- Close Towards The End Of The Month
It is the legal responsibility of the home buyer to repay their mortgage loan once their home purchase closes. If the loan closes around the middle of the month, the buyer pays their first mortgage at the beginning of the next month. Buyers who close their home purchase at month’s end can reduce extra interest fees.
- Check Into Army Or Union Discounts
If you join the army or you belong to a union, you may have access to financial assistance when buying a home. You may get discounts or reduction in closing costs. Ensure to know what you stand to gain before looking to get mortgage loans.
The Best Way To Sell Your House In Birmingham Alabama
To sell my house my fast Birmingham, you need to sell to a reliable cash home buyer. When you sell to a cash home buyer, you can avoid paying closing costs. A cash homebuyer will buy your home at the best price and you don’t have to pay any extra fees.
At Chase Pays Cash for Houses, we buy houses Birmingham Alabama at fair cash prices. We ensure that our customers get their houses off the market in record time. If you want to sell my house fast Alabama, you should sell to the best cash home buyer like Chase Pays Cash For Houses.