CLOSING COSTS: WHAT YOU NEED TO KNOW
By: Sapphire Title & Escrow Company | Published May 25, 2023
When buying or selling a property, there are a lot of costs involved, with closing costs being a significant expense for both buyers and sellers. These fees can be confusing and overwhelming, but thankfully, your partners at Sapphire Title & Escrow Company are here to help you navigate through them.
So, what are closing costs? Real estate closing costs are the fees and expenses associated with the purchase or sale of a property. These costs can vary depending on a number of factors, such as the location of the property, the purchase price, and the type of mortgage being used. Here are some common examples of real estate closing costs:
- Loan origination fees: This fee is charged by the lender to process and underwrite your mortgage application.
- Appraisal fees: This fee is paid to a professional appraiser to determine the value of the property you’re buying or selling.
- Inspection fees: This fee is paid to a home inspector to assess the condition of the property and identify any potential issues or repairs that may need to be made.
- Title search and insurance fees: A title search is conducted to ensure that the property being bought or sold has a clear title and is free of liens or other encumbrances. Title insurance protects the buyer and lender against any defects in the title.
- Survey fees: A survey may be required to determine the exact boundaries and measurements of the property.
- Recording fees: These fees are paid to the local government to record the sale or purchase of the property.
- Transfer taxes: These taxes are paid to the local government to transfer the title from the seller to the buyer.
- Attorney fees: In some states, it may be required to have an attorney present during the closing process to ensure that all legal requirements are met.
It’s important to carefully review your closing statement or settlement statement to understand all of the fees and expenses associated with your transaction. Depending on the circumstances of your transaction, there may be other closing costs as well.
Sapphire Title & Escrow Company can help with real estate closing costs by providing services such as title searches, escrow services, and preparation of closing documents. We also work with your lender, real estate agent, and other parties involved in the transaction to ensure that all necessary documents are obtained and that the closing process proceeds smoothly and efficiently.
Closing costs can be confusing and overwhelming, but with the guidance of a reputable title company, they don’t have to be. Contact us today and let our experienced team at Sapphire Title & Escrow Company help you navigate the process with confidence.