| The fees associated with buying and selling a home | | | | the broker's commission, tax transfers, documentary |
| documented in a sales contract are called closing | | | | stamp on deeds, and insurance and property taxes. |
| costs. They are split between the buyer and the | | | | Before the sale closes, the escrow officer will verify |
| seller and often involve negotiation. Buyers apply for | | | | with the lender to ensure sure the existing balance |
| a loan and receive a "good faith estimate" that may | | | | for the loan has been paid. If the proceeds from the |
| not include all of the closing costs.Buyer's closing | | | | loan do not completely pay for the seller will need to |
| costs include: the actual down payment, loan fees, | | | | pay for the remaining balance. Any additional |
| points, appreciation and credit report, along with any | | | | deductions for the sale of the home (including buyer |
| pre-paid interest, inspection fees, appraisal, mortgage | | | | credits and concessions) are subtracted before the |
| insurance, title insurance, and documentary stamps or | | | | seller receives their share of the sale |
| note. Escrow fees, homeowners insurance, and legal | | | | proceeds.Negotiations for deductions can occur with |
| fees can be included. These fees vary depending on | | | | minor or major costs. Property taxes are often |
| the lender and the details of the sales agreement.It is | | | | prorated. They are usually paid at the end of the tax |
| advisable to carefully review the estimated costs | | | | year. If the buyer has questions regarding some |
| presented by the lender. If there are any questions | | | | structural aspect of the home, including the plumbing, |
| before the actual closing, have the loan or title | | | | windows or electrical work, the buyer may request |
| company officer clarify anything before making a final | | | | the owner to credit for the repairs. At this stage, |
| decision. As Americans borrow more than $110 billion | | | | even the price of the house could even become |
| a year to buy homes, these added costs and | | | | negotiable. A buyer could offer to pay the full asking |
| charges can add significantly to the purchase price of | | | | price or more for a house in exchange for the owner |
| the home.Sellers' costs as part of the closing include: | | | | covering the closing costs. |