What Are Your Closing Costs in a Real Estate Transaction?

What Are Your Closing Costs in a Real Estate Transaction?


Hi everyone this is Yoana Nin with The
Prosperous Agency and I’m here with renowned lender April Roberts. We’re here
to tell you about closing costs so a lot of people are asking me what our closing
costs what’s the down payment which is pretty self-explanatory yeah I think but
still there’s a difference between closing costs and down payment and
closing costs you can actually ask the seller to pay if you are a buyer in the
transaction so there’s a different different I guess it’s the variation of
terms that people don’t understand so we’re here to go through what closing
costs are. Yes and that is the big questions really cause we always talk
about money to closing okay that is going to encompass your down payment
plus your closing costs mm-hmm so that’s all we’re talking about the whole amount
that you’re bringing. Closing cost piece of that is made up of all of the items
that you have to have to buy a house in North Carolina mm-hmm those items are
going to be your appraisal your attorney your title insurance your first year
come owners insurance and then if your escrowing the setup of your escrow
account other things you have to have to buy a home. There’s are gonna make a
closing cost so when you’re looking at how much you’re bringing to closing you’ve got
all of those numbers added into your down payment mm-hmm and remember some of
those items like the Homeowners Insurance there’s items that you’re going to have
to shop for while we are in our Due Diligence period or even after because
you can’t really have a house without insurance and so on and those are
details that you’re going to discuss with me and with your Lender, just to make sure we have everything covered and again remember closing costs are
going to come from your pocket there’s inspections and sometimes even appraisal
right that are being paid outside of closing so I guess there’s a lot of
confusion about that as well. Some people might say okay well the lender have told
me that we need to pay appraisal right now, upfront versus at closing. So when do you actually pay the appraisal? Some lenders will require you to pay that
appraisal upfront. Right. We do not that is part of your closing cost it’s paid at
closing right so what we typically do is we’re gonna get your information we’re
gonna let you know hey if you don’t close on the house something happens to
it you gotta pay for the appraisal, but we don’t make you pay for it upfront. Right
and also attorney, which is usually somewhere between $900 to $1100 depending
on the attorney and the company, but that’s something that you cannot really
avoid. A lot of people say well especially people that are moving from
other states they don’t understand that in this state the attorney is the one that is
actually performing the closing and so there’s like the escrow as you’re right
actually whatever it’s called in other states but you cannot not have an
attorney payment. That’s going to be vital and cannot be avoided. So as
I have touched already, the inspections are POC they are outside of closing, Equity
Resources, April here does not charge upfront for the appraisal.
We’ve covered that and then attorney another closing costs all of those together are
just closing costs and then there’s the down
payment so if you have a house if you buy a house that’s $250K, $300K and you have
a 3 percent down payment you’re gonna think that you’re gonna have to bring
another 3 percent out of the $300,000 which is gonna take you to
$9,000. So $9,000 plus your closing costs plus some costs paid outside of closing, so you gonna need to think ahead just to make sure that you have some
money in your account and it’s not just gonna be the down payment and that’s it.
Hopefully this wasn’t too complicated and too crazy from our part. If you have
any additional questions or if you know someone that is considering selling or
buying and needs additional um I guess guidance my phone number is 919.348.7303 and April’s cell phone number is 919.610.4250
Call US! Have a great day! Thank you bye bye!

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