As a real estate buyer, there are “things” that are typically paid called “closing costs”.
It’s important that your consummate real estate professional cover what those are(closing costs). If you are working with our RE/MAX Team, then you have found the right agents because we cover them in our crash course on real estate before you view the very first home.
I will do that here, in limited detail, due to our not being able to interact with each other as we do with our clients in our offices during our Real Estate Crash Course.
Closing costs include three different things for a real estate buyer.
- The fee that your lender will charge to get you a loan for a home, condo or town home
- The buyer’s part of the Escrow Fee
- The buyer’s part of the Title Fee
Escrow Fee – Typically Sellers pay their part of the escrow fee and the buyers pay their portion. Depending on the escrow company – they usually cost 1% of the purchase price.
Title Fee – This is the fee for something known as Title Insurance in real estate. It is a insurance program that protects you and your identity and your home, condo or town-home, from people saying you owe them money, who are making up stories. You may have heard of Liens and Encumbrances – these are issues that can cause you problems. This fee is about 1% of the purchase price as well.
Lender Fee – Whether you are using a mainline back, mortgage broker or a direct lender, there is going to be a cost for you to borrow money. If you are going to use Bank of America to borrow money to buy a home, they will charge you to do so. Make sure you ask, who you are using to borrow money to buy a home, what it will “really cost” in “real” dollars and cents.
Regarding these fee’s, you can pay them various ways. You can pay by check, money order, by wiring funds, credit cards, sometimes cash, or you can have the sellers pay them all or a portion of them.
That is where an experienced agent will be better for you to use when it comes to buying a Santa Clarita home.
They will know the best way to get these fee’s covered for you!
Experienced real estate agents know how to negotiate Santa Clarita homes and real estate purchases. They also are all about their clients as we are.
One of the things you should always get as part of the “What are am I paying as part of my closing costs for a home” is what the lender is charging you. Your lender has a wide “swath” as for charges and how much they can get you to pay for them obtaining a loan for you.
The Top Santa Clarita Lenders, that we use when our clients want to use to buy homes and real estate, always produce something, a document, known as a good faith estimate.
This shows what it’s going to cost for them to generate a loan when a Santa Clarita real estate buyer wants to finance a home, condo or town-home.
Make sure you are getting the best advice when it comes to buying real estate. We will be here for you when you are ready. I’m Connor MacIvor with REMAX’s Paris911 Team.