Understanding Closing Costs

by Tricia Cyr 01/03/2021

Image by Ryan R Fox from Shutterstock

It can be a stressful endeavor to purchase a home. As one of the most significant investments in life, it is important to understand the steps and fees you may encounter beyond the sale price. When you are searching for a property, keep the expense of closing in mind.

What Are Closing Costs? 

Closing costs are the various expenses and fees that are separate from the purchase price of your house. They apply to the end of the process. Charges include taxes, inspection, title insurance, and title search, as well as some upfront expenses such as homeowner’s insurance.

Closing costs generally range from two to five percent of the purchase price. The final fee is dependent on your location. Most of the expenses are for state and local government, lenders, and legal processing. You can save on some of these by working with a mortgage broker who is experienced and knowledgable about local laws.

What Should You Expect? 

  • Appraisal: This fee goes towards making sure that the price of the home matches the actual worth of the property.

  • Escrow payment: When it comes to timely preparation of the documents, you can trust a good escrow company to take care of the paperwork on your behalf. Prompt preparation of your papers can make a significant difference as it can enable you to close on time.

  • Title/attorney fee: The title and attorney fees are put in place to ensure the transfer of the home's deed occurs without issue. To ensure that it all goes smoothly, work with a highly reputable title company. 

  • Lender fees: The lender fees may include a wide range of items like transfer fees or administrative fees. A broker commission may be part of the cost.

Other fees could include loan interest and loan insurance. Your realtor can help you to save money during your closing and prepare you for the process, work closely with them to determine the fees that may be negotiable.

About the Author
Author

Tricia Cyr

Tricia Cyr is the owner /broker of CYR Real Estate, a Connecticut real estate company that has been in business for 27 years. After working for a small real estate firm located in Branford, she decided to start her own real estate company. Not only has she been actively selling real estate on the Connecticut shoreline for over 27 years, but she is also a lifetime resident of the shoreline. "I am a full-time real estate broker who knows what it takes to get the job done, allowing you to have complete confidence that you will be well represented. I give personal attention, always keeping myself accessible. I return my phone calls promptly.” 

Tricia is energetic, efficient, honest, dependable and always working with your best interest in mind. Offering the highest quality of service and will make your real estate experience a pleasant one. Cyr Real Estate has been generating repeat clients and personal referrals for 27 years. We use all the latest technology & tools to successfully market all our properties. If you are interested in buying or selling a home, or if you need help with property management, please consider Cyr Real Estate 203-481-6638 New Haven Middlesex Association of Realtors | Connecticut Association of Realtors National Association of Realtors | Shoreline Chamber of Commerce.