One of the most common questions that I get asked about closings are how much are my closing costs going to be, and that’s completely understandable.
When you’re buying a house, it’s one of the biggest purchases of your life, and there are so many different things happening and so many costs involved that most people want to know exactly what to expect cost-wise, how many different fees they’re going to have to pay.
Usually, there are a setlist of typical costs that I can estimate for you. Of course, everybody’s fees are going to be a little bit different, but normally you’re going to be paying about the same fees for every closing.
Those are going to include your recording fee for the deed and for the mortgage if you’re going to actually borrow money to buy the house as well. If you’re going to borrow money, there’s going to be lender fees, like the origination fee for the lender.
You might pay a down payment on the escrow towards next year’s taxes and insurance. You’re going to pay some towards this year’s taxes and insurance, which could be more or less depending on the time of year that you close.
- If you’re the buyer and you’re closing early on in the year, you’re going to pay more than if you were closing in say December because most of the year has already passed.
- If you’re the seller, of course, the opposite would be true. You’re also going to be paying for title insurance and title fees, so that would be my fee and then the title insurance fee, which would be different if it’s a cash closing or a loan closing.
Then you’re also going to have to pay for different fees if there’s homeowners insurance and anything. If you’re the seller, you’re going to pay the real estate commission fees. There might also be miscellaneous fees, like a pest inspection, if you’re going to get a survey.
Again, your fees are going to differ depending on if you have a cash closing or a loan closing and exactly what time of year that you’re closing.