What costs are associated with buying and selling a home?
Answers:
Too much to list here but, in general you pay around 2% of the loan in closing costs and there are some prepaid items. When you sell most of the time the buyer pays the closing costs and the seller pays for inspections and anything that may be wrong with the house. If at all possible don't use a realtor, it costs you more money and they really don't do anything you can't do yourself.
You need a lawyer for closing, points (a fee for the bank for loan origination, many banks will waive this) a prorated morgatage payment ie may 15 to 30. home owners insurance, a title search to make sure the house isn't being held by the IRS for back taxes or his ex wife for h=childsupport, a survey, a bank appraisal to see if the house is worth what you are paying for it. Actually your morgtage holder should give you a good faith esitmate which will have all this in it. You have to pay these things at closing so this way you can be prepared to pay.
There are a ton of fees that can be charged. Just beware of what you are paying for. I have worked in the mortgage industry for 3 years now and I have seen brokers, especially on the East and West coast, rip their borrower's off. The reason they get away with it is simply because the buyer has no idea. You should never pay more than 1% to the broker directly. If your broker is charging you for a processing or admin fee, ask them what they are charging that for. Chances are, they are just made up fees so you can negotiate these. You can also negotiate title charges. The best thing you can do is go through a bank and avoid a broker. A lot of times, banks offer no closing cost specials.
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