Purchasing a home can start to get a little complicated when it comes time to transfer money and figure out the final closing costs.
While there are different fees and premiums you will pay as a buyer in different states, let’s take a look at some of the most common expenses you will occur as part of closing costs.
Closing Costs: What Does the Buyer Pay?
Commissions for Closing Costs
Because the individuals purchasing a home and selling a home are working with agents, there is normally a 6% commission fee that is split between the buyer’s and seller’s agent. This is payment for all the work the agents have done, but the seller is the one who normally pays the entire or majority of the commission. This can vary in different circumstances, but a buyer will normally not have to pay any of the commissions for the agents.
Application and Appraisal Fees
When working with a lender, there are generally going to be a few fees that the buyer is in charge of. One of those fees will be an appraisal fee, which stems from an independent appraiser determining if the property you are purchasing is worth the sale price that you have offered. Additionally, there is generally an application fee.
Attorney and Recording Fees
Depending on your location, attorneys will sometimes be hired to handle reviewing certain documents.In order for the sale to be recorded into the public record, it will cost a fee for the buyer as part of the closing costs.
Credit Report Fees
Although this isn’t as costly as some of the other fees previously mentioned, a buyer is going to need to have a credit check. The lender will analyze your credit history and reports, and this will determine how much money you can receive for your loan.
Real Estate Settlement Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.