Remember when your parents or grandparents would flip you a couple bucks and say “go get what you want kiddo!” Then you’d race off to the candy aisle for some sugary goodness! You end up with two candy bars (that you’re thinking should cost $1.98) and as the cashier rings them up – you realize you’ve got a problem: sales tax! (hope somebody has spare change?)
Hi, I am Kyle Chaney with Guarantee Real Estate.
Don’t feel panic next time you buy or sell a home… Make sure you understand what closing costs are. These are costs that apply to the sale of a home that both buyer and seller incur.
Like the name implies, they’re paid at the end of your sale before ownership transfers… and typically include escrow fees, insurances, loan origination costs, prepaid interest and a few other items.
Remember, lenders are required by law to provide you a loan estimate – including those closing costs – within 3 days of receiving your application.
Plan on 3 to 5% of the purchase price.
For the best information on what you can and can’t negotiate, work with a local realtor… so you aren’t left scrambling for funds at the last minute.