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Escrow & Closing Costs

Click a question to jump right to the answer:

  1. How can I save on closing costs?
  2. What are closing costs?
  3. Who pays the closing costs?

How can I save on closing costs?
Prior to placing an offer on a home, ask your lender for a cost estimate that details the closing cost fees you can expect to pay. Factor closing costs, your down payment, as well as any other initial services or fees you may incur into your overall budget. Closings costs can be lowered by choosing a low or no-point loan, but remember that in return your monthly interest rate may be higher. Another option is to ask the seller to pay the buyer’s closing fees, or a portion of them. In addition to the bank closing costs, the settlement company will have fees they charge for their services along with lender’s and owner’s title insurance. Your Magnificent Manors Realtor® will be able to provide you with guidance on how to lower these costs.

What are closing costs?
Closing costs are the transaction fees charged by a lender during the purchase of a home. Generally closing costs cover items such as origination fees, title fees, appraisals, discount points, underwriting, etc. When searching for a lender, always ask for a cost estimate. A cost estimate allows you to see all of the lender’s estimated costs for closing prior to committing to the lender along with the settlement company fees and lender’s and owner’s title insurance.

Who pays the closing costs?
Closing costs are either paid by the buyer, seller, or a combination of the two. Each state has different closing regulations. Your Magnificent Manors Realtor® will help you develop the best closing cost strategy for you when submitting your offer.