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.
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.
When you apply for a mortgage loan you may decide to lock in the interest rate early on. As your closing date approaches the going interest rate for mortgages of your type may change. What can you do if the interest rate available at the time of your closing is lower than the rate that you locked in? You can either close on that loan and start the refinance process right away or you can ask your mortgage lender to lower the rate on the loan you're about to get.
When you buy a home who pays the property taxes for your first year will depend on when you bought the home and where you bought it. In some cases buyers and sellers split the cost of property taxes. How much of the property taxes buyers and sellers pay may be determined by prorating the amount.
When you're applying for a mortgage loan you need to look out for extra fees that mortgage lenders may charge. Some of these extra fees, such as extra money toward credit reports or appraisals, are illegal under RESPA, the Real Estate Settlement Procedures Act. Learn more about what mortgage fees to watch out for here.
When you're buying a home, just before closing it's a good idea to do a final walk-through. A final walk-through is a quick home inspection where you do a check of all appliances one more time. Doing a final walk-through home inspection can help you spot problems that could prevent a successful closing when you're buying a home.
When you're closing on a home sale, the timing of the seller moving out and the buyer moving in are critical. If the seller moves out too late the buyer may not want the home. If the buyer won't give the seller time to move out it may mean the seller needs to move earlier. Learn how to negotiate the day the buyer will take possession of a home with a real estate attorney.