Average closing costs are for a buyer

Average closing costs are for a buyer


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Find yourself wondering what the average closing costs are for a buyer?

Closing costs are those annoying fees that get tacked onto a seller’s asking price during negotiation of buying a home. Most of the time the buyer is responsible for the closing costs but there are situations when other parties involved, such as the seller or realtor covers a portion or all of the costs. Before we get into the average closing costs lets first find out what exactly is included in the “closing costs”.

Closing Costs Include Any of the Following:

  • Credit report fee
  • Fee for processing a loan
  • Attorney fees
  • Different Inspection fees
  • Appraisal fee
  • Title insurance
  • Background check on the title fee
  • Underwriting fee (cost of evaluating a mortgage loan application)

Now onto the average closing costs for a buyer:

A homebuyer in a typical situation will be responsible for paying around 2 to 5% of the price the home is purchased. The calculated average closing costs for a buyer is about $3,700. As stated earlier there are situations where the seller will take responsibility for a percentage or all of the closing costs. There is also an opportunity to avoid closing costs by getting a no-closing cost mortgage, meaning you don’t pay anything when a buyer closes on the mortgage. We recommend against doing this because in the long run a buyer could be charged higher interests rates on the loan or the closing cost is fixed into the mortgage making it higher than it would have been if closing cost were paid up front.

Closing costs involve many different parties and can get confusing. Therefore, if you have any more questions about the average closing costs for a buyer don’t hesitate to call us. We promise if you chose to buy or sell a home through us we will make this stressful process go quick and easy!

Give us a call today at 587.800.1213 to let us know what YOU need help with!

 D Gees Homes & Realty has the experience, know-how, and infrastructure to offer you great opportunities in your real estate endeavors, whether you need to sell your house, a new rehab project to work on or would like to learn about other options.

Please call us today at 587.800.1213 if you’d like to learn more about the real estate services that we offer.

 

 

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