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