What Are Real Estate Closing Costs Exactly?

What Are Real Estate Closing Costs Exactly?

What Are Real Estate Closing Costs Exactly?

Whenever you’re going to sell your home and you’re using a realtor to help you make the sale, you’re going to have different closing costs that are associated with the sale, and you’ll also have closing costs that are connected to buying your new home. 

Being aware of the exact amount of these costs will help you have a better idea of what your profit can be from the sale of your home and how much of that money you can put toward your next home. 

The Different Kinds of Closing Costs

To know how much money from the sale will go to closing costs, you need to be aware of the different kinds of fees connected to selling your home. 

Origination Fee - The amount of money you pay to your lender to judge how much credit you have available

Appraisal Fee - Will evaluate how much your home is worth and what you could place it on the market for. 

Termite Inspection Fee - You’ll need this to prove to potential buyers that your home has a solid foundation and doesn’t have termite issues connected to it.

Homeowner Insurance - In most situations, you’ll pay for the first year up-front to cover your home from any potential damages. 

Transfer Tax - This tax is usually paid to the state. The amount you have to pay is based on what state you live in, along with how much your mortgage is worth. 

Your Closing Cost Varies Based on the Price of Your Home

Your closing costs will be based on the exact price of your home because so many of the items listed above aren’t a flat rate; instead they’re based on a percentage of your home buying. 

If determining how much you can afford for your closing costs sounds like too much of a hassle, then contact Freedom Homebuyer today! The beauty of working with us is that we buy houses for cash, which means that you won’t need to worry about any closing costs or realtor fees!

Does this sound like something you’re interested in? If so, give us a call at 480-462-6445. We look forward to hearing from you!

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