What you should expect when making a closing transaction
A closing entails the official transfer of a home or property from the seller to the buyer. A closing requires the presence of the buyer, seller and closing agent or attorney.
Buyers should be prepared to pay a closing cost of around one percent. On average, the closing cost on a house that costs $200,000 would be $2,000. This cost includes lender and non-lender fees:
- Lender fees: These fees go to the lender or mortgage company providing the loan. This includes an origination fee, which makes up 0.5 percent of the loan amount. The larger the down payment you make on the mortgage, the less you’ll pay on the origination fee. Additional fees may also be required for tax services and document preparation.
- Non-lender fees: These fees apply to all real estate transactions, regardless of whether they are paid in cash or a loan. A settlement fee will go to the attorney involved in the closing and transfer of the property title. Your home will also require an appraisal, which may cost anywhere from $300 to $600, depending on the size and location of the home. An appraiser will estimate the home’s value and ensure that the market value is accurate.
Why hire an attorney?
When you purchase a home, you enter into a contractual agreement with the seller and broker on the cost. You must then fulfill your financial commitment by paying cash or obtaining a mortgage. During the closing, the title would be transferred to you from the seller. While this sounds simple, it is more complex than you think. Even a small misunderstanding about how the process works can be disastrous and lead to future complications.
That’s why you should never attempt to close on a house or property without the presence of an experienced real estate attorney. At Tabor Law, P.A., we have the legal knowledge and experience to make sure that the process of buying a home goes smoothly. Attorney Leigh-Ann Tabor will leave no stone unturned.
Contact us today to learn more about how we can help you. You can also call us at (833) 352-8579.