Paying For Closing Costs
There’s more than just a down payment you need to make when purchasing a home. You also have to factor in paying for closing costs. Essentially, these are processing fees that must be paid to your lender. Oftentimes, this includes items such as title and appraisals. With that said, here is a quick guide on what you should plan on!
Who Pays For Closing Costs
First off, it’s important to note that both the buyer and seller partake in paying for closing costs. However, most of this often falls on the buyer’s shoulders. On the other hand, it is possible to negotiate these terms. These are called “seller concessions,” and can be used to negotiate the seller helping pay more of the closing costs. There are limits, however, to how much a seller can contribute depending on what type of loan is used. Always have your trusted real estate team work closely with you for these important details.
How Much It Costs
Typically, paying for closing costs will end up between 3-6% of the price of the home. For example, a $250,000 price on a home will end up with roughly $7500-$15,000 paying for closing costs. Remember, closing costs are not part of your down payment. At the end of the day, the amount you pay for closing costs depends on the type of loan, the value of the home, and your state laws. As always, have your real estate team work with you through the process to determine the exact cost when the time comes.
Your Michigan Neighbors Are Our Clients
Join thousands of Michigan home buyers and sellers who trusted Venture Title Agency to guide them through the critically important title-closing process. We provide on-time title and escrow services so your closing is worry-free. Contact us today to schedule your closing!