As a Tallahassee REALTOR®, I find that many new homebuyers are familiar with the idea of saving for a downpayment. However, many are surprised by fees charged at the end of the transaction. These fees are known in the real estate industry as “closing costs.”
Settlement fees or closing costs must be paid when a buyer obtains a mortgage. The fees are charges from those involved in the purchase such as the lender, real estate agent, and other third parties who are utilized during the transaction. The costs usually amount to 2 and 5% of the total purchase price.
Some of the fees that may be included in your transaction’s closing costs include:
- Appraisal fees
- Attorney fees
- Credit report fees
- Government recording costs
- Lender origination fees
- Survey fees
- Tax service fees
- Title services
- Underwriting fees
Is there any way to pay less in closing costs?
Talk to your REALTOR® and lender about how you can decrease your closing costs. Some of your closing costs may be negotiable. Additionally, during some transactions, the seller may assume all or a portion of the buyer’s closing costs to finalize the transaction. This is known as a seller’s concession.