What Are Closing Costs?
Closing costs sometimes have new buyers and sellers confused, especially when they appear to be so much at times.People just can’t understand why buying a home costs so much more then the actual home itself. Here are some costs included in the closing costs total when buying Tahoe or Truckee real estate.
When a lender spends the time to find you the best loan for you Truckee home, it obviously costs money. This fee can be in the form of actual costs or points off the loan itself. One point is equal to 1% of the home loan. You can buy these points at the time of the closing and reduce the interest rate. Or you can knock off the points and incur more interest. Each lender is different and charges different fees and points which is why it’s a great idea to shop around for the best loan option.
- Appraisal Fees
When buying a home your lender will require an appraisal to make sure the home is worth to them what you are paying for it. This is typically about $200-$500 and will be included in the closing costs.
- Title and Escrow
Whether you are buying or selling a home there will be escrow and title fees. The title company will take out a one time premium insurance policy to verify that the seller has legal right to sell the Tahoe real estate and that the buyer will not have any future problems owning the property. The escrow company can also be the title company or it can be a separate third party altogether. Escrow will make sure all the final documents, paperwork and personal information is pulled together for signing and is accurate. All these insurance and officer fees will be included in the closing costs.
- Miscellaneous Fees
If ever you are not clear about a fee or costs anywhere on your good faith estimate or in your Truckee home transaction, please don’t hesitate to ask your escrow, lender or your real estate agent. It can be very confusing at times without the proper explanation. Miscellaneous fees can include loan application fees, excise tax for sellers, real estate commissions and more. Each transaction is different and is handled differently. What you had on one closing application may be different the next time you buy or sell.
For more information or to get started buying or selling any Truckee real estate, please contact me anytime!