What You Need To Know About Closing Costs

Closing costs are one of the most important, yet most misunderstood portions of a real estate transaction.

Whether you are a buyer or a seller, you should have a clear comprehension of:

  • what closing costs are
  • what costs you will be responsible for paying
  • when you will have to pay your closing costs
  • why you are paying them at all

If you are like most people, your money is important to you and you want to understand where it is going. Especially, during a transaction as major as buying a piece of real estate.

Just so there is no more confusion, today’s post is dedicated to breaking down what you need to know about closing costs.

There Are Different Types Of Closing Costs

There is not a singular cost or type of cost. There are several, and they all have different causes. A few of the various common causes include:

  • Escrow
  • Title search
  • Owner’s insurance
  • Lender’s insurance
  • Credit report fee
  • Document stamps
  • Recording fees

If you don’t understand any of the fees named on your settlement statement, be sure to raise your hand and ask. Don’t be embarrassed when it comes to asking questions about where your money is going.

Your Closing Costs Don’t All Have To Be Paid Upfront

It is always a good idea to try and save up as much money as you can for a downpayment and closing costs ahead of time. However, keep in mind that not all of these costs will need to be paid upfront. One way to avoid a large lump sum up front is buy opting for a higher mortgage payment in exchange for deferring some of the initial cost.

You Don’t Have To Pay Closing Costs To Buy A New Home

In some cases, your lender will pay your closing costs for you, in exchange for you paying a higher interest rate over the term of your mortgage. You can use some of that extra cash to make a larger down payment or for moving expenses.

You Will Know Your Closing Costs Before You Come To Closing

Your closing costs should never be a shock to you at the closing table. Ask your Realtor and the agent handling the title of your transaction to present you with a settlement statement prior to closing. This is standard practice anyway, but it never hurts to be proactive. Having a chance to understand all of these costs before you come to the closing table with make for a much more pleasant experience.

You Should Always Ask Your Realtor About Closing Costs You Don’t Understand

It can’t be stressed enough that you should have open lines of communication with your Realtor throughout the process. If you are confused or have any questions about any part of the closing or transaction, let your Realtor know. They want to make sure you are happy with your home purchase.

Thinking Of Buying New Construction In Florida?

Port Charlotte is one of the most desirable and beautiful places to live in all of Florida, and it is no wonder why our residents are so proud to call it home. In fact, you will often hear them boasting and bragging that they get to live where the rest of the world dreams of vacationing.

Everything from the weather, to the convenience factor, to the unparallelled beaches make life in Port Charlotte spectacular. However, not all homes here are created equally.

Why live in paradise, without living in a place that truly embodies the sparkle and splendor of the Florida lifestyle? If you truly want to live your dream in a luxury, resort-style community, you must come to our Harborside condos and villas. From the picturesque location, to the five-star amenities, everything at Harborside is first class, and it is just waiting for you to take a tour.