When buying a house, the down payment isn’t the only expense you need to be aware of and prepare for. Before you can call the home yours, there are many other costs and fees that you must pay. The closing costs are one of these. It is crucial that you evaluate your financial situation before beginning the home-buying process. It is important to make sure you have enough money and savings to be able to smoothly complete the purchase process.
What are the closing costs?
These fees are charged by the lender or third-party companies involved in your home purchase transaction and must be paid at closing. The majority of closing fees range from 2 to 5 percent of your purchase price depending on which lender or third-party company is requesting them.
When buying a Myrtle Beach home, closing costs may be either recurring or not. Recurring closing fees are due each month and will begin at the close of the purchase transaction. These are the one-time fees you will be required to pay at closing. These fees are usually associated with the closing of the purchase transaction and processing your mortgage loan.
Recurring closing cost when purchasing a home
You will need to pay the following recurring closing costs:
fire insurance premiums
home owners association dues
prepaid loan interest
The owner of the house is responsible for paying property taxes. These are the responsibilities for the seller of the house until you sign the purchase agreement. You will be responsible for property taxes once you have signed the contract. These will begin from the next billing cycle after the date of purchase. Property taxes are charged by the year, and prorated at closing. The owner will be reimbursed by the buyer for any taxes already paid.
Buyers are generally required to pay the entire annual premium for homeowners’ insurance at closing. You may also be required to make additional monthly payments for homeowners’ insurance. Prepaid loan interest is paid each month beginning with the closing of the transaction. For assistance, contact Full Potential Real Estate, LLC if you have any questions.
You will need to pay nonrecurring closing costs when you buy a house
All lender fees are generally included in the nonrecurring costs associated with closing a home purchase transaction. The fees charged by different lenders will vary. Before you make a home purchase, it is a good idea to talk with all the potential lenders about these fees. You will be able to negotiate the best deal for you and your lender. Don’t be afraid to ask a real estate agent for help if you are unsure of what to do.
These are the fees you will need to pay your lender at closing:
The origination fee is charged when your loan is processed.
The wire transfer fee is charged by your lender when you wire the money to pay for the house.
Preparation of loan documents requires a document prep fee.
The lender may charge a credit report fee to obtain a copy of your credit reports.
Appraisal fee is the amount the lender will pay to have a professional estimate the value of your house.
For evaluating and verifying your applications, there is an underwriting fee.
Survey fee is charged by the lender to verify the property lines for the house you are purchasing.
Depending on which lender you work with, there may be additional fees. These fees can be negotiated with the lender. However, it is important to set aside time to talk with the lender and explore all options. Remember that the lender must also benefit from your proposals.
A professional who is experienced and trained will help you negotiate a lower closing cost. Full Potential Real Estate, LLC can help you negotiate closing costs, and ensure that your transaction is smooth when purchasing a home. For more information, call them today. You may reach us at (843) 492-4537.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577