Closing Costs for Buyer
When buying real estate in addition to the downpayment, there are also closing costs. The combination of your downpayment and closing costs is the total amount of cash required to close the deal.How much are Buyer Closing Costs?
At closing, Escrow prepares a closing statement, which is a record of the actual closing costs. After closing it is a good idea to review the closing statement make sure everything looks correct.
What is the typical closing costs for the buyer?
Here is the breakdown of the different buyer side closing costs:
Due immediately once in escrow:
Earnest Money Deposit (3% of purchase price) Refundable.
Appraisal (~$450)
Inspections (~$1,000)
Due at the time of closing:
Loan Origination Cost (~$3,000)
Loan Point (1 point loan = 1% of loan amount, no point loans have no points)
Buyer side escrow fee ($250 base + $1.75 per $1,000 of purchase price)
Lender title Insurance (None if all cash)
Prepaid Interest, Impounds for Property tax, and reserves, if required by the lender for the loan.
Proration on Property tax/ HOA Dues
Do buyers pay the broker commission?
Seller Paid Closing Costs- How does it work?
With some deals, if you are running short on cash, and it’s a slow market, you may be able to work out a deal with the seller to help pay for your closing costs. Don’t expect to get any concessions on balanced or seller’s markets. For buyers with Low downpayment loans like FHA Loans and VA Loans, it is more common for sellers to pay for the buyer’s closing costs in order to help the buyer close the deal.