1.What is the closing cost?

When buying a house, it is necessary to pay the relevant fees to the lending institution and the third party when the real estate transaction is settled. The conditions are different for each transaction. buyers may base on 1-3% to prepare the fee for closing cost.

2. What is included for closing cost?

Mainly divided into one-time costs and recurring costs.

One-time cost means Only a one-time payment fee is required in this transaction.

For example:

1. Escrow Fee (transaction escrow fee)

2. Lender Fee (loan-related fees)

3. Title Insurance Fee 

4. Government Charges

5. House Inspection Report

6. HOA Transfer Fee

Recurring Buyer Closing Cost means  it is the cost that the buyer needs to pay repeatedly in the future.

Such as:

1. Property Insurance 
2. Property Tax 
3. Interest 
4. HOA Fee (The monthly property management fee)

3. An Example to explain 

From the graph we can see, if you are planning to buy a house with the price of $800,000. The fixed closing cost is $5,878. And the prepaid closing cost is $8,133. Then the closing cost of buying a house is about $14,000. That is 1.75% of the house price.

The above is the basic instruction of closing cost. In addition to the down payment, there is also a closing fee that the buyer needs to prepare in advance.

If you have any questions or demand about selling or purchasing homes, please contact me.