Just What is Involved in Closing Costs?
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Bruce Swedal
May 4, 2013, 10:10:02 PM5/4/13
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Bruce Swedal
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Article Title: Just What is Involved in Closing Costs?
Author: Bruce Swedal
Word Count: 629
Article URL: http://www.isnare.com/?aid=687608&ca=Real+Estate
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=687608
Easy Publish Tool: http://www.isnare.com/html.php?aid=687608
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If you get a house loan from a bank you will have to pay closing cost. The amount of closing cost depends on how much you are financing through the bank. Closing cost is 3 percent of the price financed. If you are buying a $100,000 house, then your closing cost will be about three thousand dollars. That is the amount to be paid out of pocket along with your down payment. The reason closing costs are so high is because of all the fees involved with it. There are 15 fees involved with closing cost. The fees are generally as follows; attorney fees, title service fee, recording fees, document fees, survey fees, brokerage commission fees (seller cost), mortgage application fees, points fee, appraisal fees, inspection fees, home warranties fees, prepaid property insurance, pro - rated property tax, pro - rated homeowner association dues, and pro - rated interested. Those are a lot fees that they sure don't tell you about before buying a house.
What do all these fees mean exactly is the question a lot people ask themselves? Attorney fees are to pay the lawyer to prepare and record all official documents. The title service fee is to cover the title search that must be done before buying your house. Recording fees are for the change of ownership of the property from the seller's name to the buyer's name. Document fee is charged by a governmental entity for a tax that is required by law. A survey fee is for the property to be surveyed to check the dimensions of the lot size. Brokerage Commission fee (seller cost) is just a fancy way of saying a fee to pay the Realtor who helped you find the house you are buying. Brokerage Commission is usually about 6 percent of the price paid for the house. Mortgage application fees are what you have to pay the mortgage company for help to get you the loan to buy your house.
A points fee is not always in there, as it's something the bank offers you to lower your interest rate. You can buy points to make your interest rate lower. This will only benefit you if you plan to stay in that house for longer than 5 years. Appraisal fee is also what is says, you must have the house appraised before buying the house. If the value is less then what the buyer and seller has agreed for the prices, the seller has no choice, but to go down on their price. A mortgage company will not finance a house for more than the house value. Inspection fees are for the house to be inspected for major problems and pest. Home warranties are offered to the buyer in case a major expense happens, this warranty will help pay for it. For example, if the oven breaks the warranty will help pay to fix or replace the oven. This is an optional fee. Prepaid property insurance is determined by the date of the purchase of the house. If the house is bought in April, you will only pay for the remaining months. This is so you don't pay for months that you didn't own the house. Pro - rated property tax works the same as prepaid property insurance. This is so you don't pay for months that you didn't own the house. The same goes for pro - rated homeowner's association dues and pro - rated interest.
These are a lot of the fees that the buyer must pay for. There is a lot of work that goes into a house loan. Many people just don't see how much work goes into obtaining a home loan. Everybody must be paid, so as the buyer, you must pay as well.
About The Author: http://www.bruceswedal.com/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=687608
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
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Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Bruce Swedal
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=687608
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=687608
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Just What is Involved in Closing Costs?
Author: Bruce Swedal
Word Count: 629
Article URL: http://www.isnare.com/?aid=687608&ca=Real+Estate
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=687608
Easy Publish Tool: http://www.isnare.com/html.php?aid=687608
*********************** ARTICLE START ***********************
If you get a house loan from a bank you will have to pay closing cost. The amount of closing cost depends on how much you are financing through the bank. Closing cost is 3 percent of the price financed. If you are buying a $100,000 house, then your closing cost will be about three thousand dollars. That is the amount to be paid out of pocket along with your down payment. The reason closing costs are so high is because of all the fees involved with it. There are 15 fees involved with closing cost. The fees are generally as follows; attorney fees, title service fee, recording fees, document fees, survey fees, brokerage commission fees (seller cost), mortgage application fees, points fee, appraisal fees, inspection fees, home warranties fees, prepaid property insurance, pro - rated property tax, pro - rated homeowner association dues, and pro - rated interested. Those are a lot fees that they sure don't tell you about before buying a house.
What do all these fees mean exactly is the question a lot people ask themselves? Attorney fees are to pay the lawyer to prepare and record all official documents. The title service fee is to cover the title search that must be done before buying your house. Recording fees are for the change of ownership of the property from the seller's name to the buyer's name. Document fee is charged by a governmental entity for a tax that is required by law. A survey fee is for the property to be surveyed to check the dimensions of the lot size. Brokerage Commission fee (seller cost) is just a fancy way of saying a fee to pay the Realtor who helped you find the house you are buying. Brokerage Commission is usually about 6 percent of the price paid for the house. Mortgage application fees are what you have to pay the mortgage company for help to get you the loan to buy your house.
A points fee is not always in there, as it's something the bank offers you to lower your interest rate. You can buy points to make your interest rate lower. This will only benefit you if you plan to stay in that house for longer than 5 years. Appraisal fee is also what is says, you must have the house appraised before buying the house. If the value is less then what the buyer and seller has agreed for the prices, the seller has no choice, but to go down on their price. A mortgage company will not finance a house for more than the house value. Inspection fees are for the house to be inspected for major problems and pest. Home warranties are offered to the buyer in case a major expense happens, this warranty will help pay for it. For example, if the oven breaks the warranty will help pay to fix or replace the oven. This is an optional fee. Prepaid property insurance is determined by the date of the purchase of the house. If the house is bought in April, you will only pay for the remaining months. This is so you don't pay for months that you didn't own the house. Pro - rated property tax works the same as prepaid property insurance. This is so you don't pay for months that you didn't own the house. The same goes for pro - rated homeowner's association dues and pro - rated interest.
These are a lot of the fees that the buyer must pay for. There is a lot of work that goes into a house loan. Many people just don't see how much work goes into obtaining a home loan. Everybody must be paid, so as the buyer, you must pay as well.
About The Author: http://www.bruceswedal.com/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=687608
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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