A Breakdown Of Closing Costs

Getting our clients to the closing table is one of the more rewarding elements of serving as an attorney involved in real estate transactions. The process begins when potential homebuyers visit an open house and envision the lives they can build there. Dreams turn into reality when their offer is accepted. Though that is a joyous occasion it is followed by weeks if not months of work associated, among other things, with the inspection or due diligence period and obtaining the lender’s final approval on the loan. 

When you arrive at the closing table, most people are usually so relieved to finish the process that they barely remember everything that happened. With that in mind, shift your attention to closing costs. Although the phrase is widely used, many people are unaware of what closing costs are. Closing costs refer to the fees and expenses incurred during the sale’s final stages when the home is legally transferred to the buyer. There are a wide range of fees included: 

  • Appraisal fees
  • Inspection fees
  • Title search fees
  • Title insurance 
  • Property tax considerations 
  • Government transfer taxes
  • Government recording fees
  • Homeowners’ insurance 
  • Loan origination fees 
  • Discount points
  • Lender required escrow deposits
  • Attorney’s fees

How Can I Estimate the Amount?

Several factors affect how much a buyer (or seller) will pay at closing. The home’s location will be a significant factor as many costs and expenses are calculated on a sliding scale associated with the home’s sales price. The loan’s specifics will also impact closing costs. Anyone who buys a home must factor in closing costs in addition to the money they provide as a down payment to ensure they can complete the sale. Remember, when someone buys a home, they will be part of a team that includes a real estate agent, an attorney and a mortgage lender. It is wise to lean on them to assist you in determining how much you will be expected to pay at closing. 

As to the lender’s fees, you should first get a loan estimate from the lender. The lender must give you a loan estimate within three business days of applying for your mortgage. This is going to outline the closing costs that are tied to your loan. On it, you can see line-by-line estimated expenses and fees. Again, the word estimated needs to be stressed as closing figures sometimes change as you get closer to the closing and more details emerge about the deal.  Nonetheless, you can financially prepare for the estimated or ballpark amount by using the itemized list given to you by a lender. 

After selecting a mortgage lender, you can choose who you want to use to assist you as a real estate agent, as an attorney, and who inspects the home during the inspection or due diligence period.  Remember that you can shop around for such services and it is highly recommended that you do so. 

Get in Touch with a Real Estate Attorney 

Although attending the closing is the final step in the process, it is not the only stage of a real estate transaction that can seem confusing and complex.  Due to all that is involved throughout the transaction, most agree it is helpful to have a reliable and experienced attorney guiding you throughout. Auricchio Law Offices reviews each contract to make the process efficient and manageable and so as to help you avoid long-term issues.  Before entering your new real estate transaction, contact our offices and set up a free consultation.  We greatly desire to assist you while you make one of your life’s most significant financial decisions.

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Auricchio Law Offices

Auricchio Law Offices in Chicago provides a complete range of real estate services. We facilitate residential and commercial real estate transactions, advise and represent condominium associations, and represent property owners in real estate litigation. Whatever your real estate issue, we will work diligently to achieve your goals in a timely and efficient manner.

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