Many of the closing costs on the sale of a home usually fall to the buyer, who is responsible for paying a variety of fees in order to finalize the sale. In some situations, a seller may offer to help with these costs or even cover them in full in order to help complete a sale. This isn’t always a necessary or even appropriate move, but in the right situation it can sell a house faster. When To Offer To Pay Closing Costs As a general rule, a seller should consider offering to pay the closing costs when they really need to get the home sold fast. Offering such an incentive may mean that your home sells faster and more easily than had you not offered. You might also offer to pay closing costs if you have a lot of equity and will make a good profit off the sale. In a market when it is harder for buyers to get loans or come up with down payments, sometimes a seller who is motivated and has the extra equity to handle closing costs can make the difference between buying a home and waiting to save up even more money. When […]
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Most people who are in the market for a new home are aware of the costs associated with purchasing a home and moving, but closing costs can be expenses that may be overlooked, especially for first-time home buyers. The amount of the closing costs will depend on where you live, the type of home you are purchasing, and the type of mortgage you are going to carry, but in most cases they can equal anywhere from two to four percent of the purchase price of your home. So before planning your home purchase budget, here are some hidden expenses that you may want to include. In general there are two types of closing costs, recurring and non-recurring. Recurring costs include things like fire and flood insurance, property taxes, and mortgage insurance; these are expenses that will have to become part of your monthly budget and in most cases are often anticipated by new home buyers. Non-recurring costs are one-time costs that are associated with closing a home purchase, and in most cases make up the bulk of extra expenses. Non-recurring closing costs usually include: Title Policies Escrow Wire Fees Delivery Attorney Fees Endorsements Recording Transfer Taxes Home Protection Plans Natural […]
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For first time buyers, the amount of money that is needed to seal the deal can often come as a bit of a shock. Known as the closing costs of the deal, this amount of money involves a number of different factors that can add up to several thousand dollars out of pocket for the buyer. You should be prepared ahead of time to pay this amount—or find alternative ways to take care of them. What Things Fall Under Closing Costs? Some of the things you will commonly see included in closing costs are a number of fees and types of insurance. First of all, there are origination fees on the loan, which are usually a percentage of the amount financed. You will also see an appraisal fee and a credit report fee, both of which the buyer is usually responsible for. There are also fees for the home inspection and other possible fees such as bank processing fees and flood certification. You will also have to pay for the homeowner’s insurance policy on the home for the first year in order to close, and for title insurance. You may also have to pay property taxes on the home. How […]
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