Closing is the final step in transferring ownership of a real estate property from real estate seller to real estate buyer. Some states require a lawyer to be present at a closing. Closing costs can include the cost of the land survey, broker’s fees, taxes, attorney’s fees, utility fees, homeowners association fees and inspection fees. The fees can vary depending on the contract, the location, and the time of the month the closing occurs. Get more information here about real estate closing transactions.
A young couple was on the way to owning their first condo. On the morning of the closing, the lender calls to say they will not be able to make the loan because the building is a condominium conversion. Ilyce and Sam give the reader advice on how to recover their many expenses and how to avoid this homebuyer nightmare.
A home buyer received a good faith estimate including an estimated amount for the private mortgage insurance. At the closing, the PMI amount was different. By choosing a different type of loan or increasing your loan amount, they could have affected the amount of the monthly PMI payment. However, the home buyer could have avoided PMI all together with an 80/10/10 loan.
When you buy a home that's had home improvements made without building permits, it's up to you to rectify that with your local government. In many cases, the local government will allow you to buy the building permits after the fact and consider the work in compliance with the building code. If you discover that the home you want to buy has had work done without building permits, you can stop the closing on the house.
What can you do if you receive property tax bills that were the responsibility of a previous owner? The title company who provided title insurance at the closing should be responsible for the costs. The title company certifies that a title is free and clear of all tax obligations at closing. All costs, including taxes, should be determined at closing.
Buying a house? Do you know what your options are if there are problems after the closing? What happens if a boiler blows up or a pipe bursts? It's important to have warranty information for all appliances so you can get problems resolved after closing.
It's generally not a good idea to get a mortgage loan with a prepayment penalty because even if your loan gets sold, the penalty remains in effect. Learn how prepayment penalties are calculated by mortgage lenders. Also be aware that prepayment penalties can kick in when you sell your home at closing.
Transfer taxes are based on the sales price of your home. Transfer taxes are public record, but you can also find out about them from your lender or title company. Nearly every county, state and local municipality raises money via transfer taxes. These are stamps that sellers are required to purchase that must be affixed to the deed in order for the transaction to close.