What Are the Closing Costs on a House?
/
Thinking about buying your dream home in Lawrence, KS? We know you may have questions like - what are the closing costs on a house? While finding the perfect house to start a family is exciting, there are additional expenses to consider beyond the purchase price. Closing costs are fees associated with a mortgage and property transfer that can add up fast. Realtor Jackie Giroux is here to help you navigate every step of the home buying journey, including understanding and potentially negotiating closing costs.
How Much Are Home Closing Costs for a Buyer?
Home closing costs for a buyer in the United States typically range from 2% to 6% of the purchase price of your home or property. That means that on a $300,000 home loan, you could expect to pay anywhere from $6,000 to $18,000 in closing costs on top of your down payment. The closing costs for a home will vary based on where you live and the home that you purchase.
In Kansas - closing costs are among the lowest in the United States and in many cases the average closing costs total 1% of the final sale price. When you purchase a home in Lawrence, KS you can expect the closing costs to remain in a lower range than many other states. The median list price in Lawrence in May 2024 (according to rockethomes.com) is $314,900 - which means closing costs for a buyer would be an estimated $3,149 with 1% closing costs. The exact amount you pay in closing costs will depend on several factors like the loan type, lender fees, and even property taxes. Realtor Jackie Giroux in Lawrence can help you navigate the home buying process in Lawrence and estimate closing costs for your specific situation.
List of Fees Included in Closing Costs
Closing costs can feel like a maze of fees for homebuyers. These one-time expenses are due at the closing table and cover various services related to the finalization of your home purchase. Here's a quick breakdown of some common fees included in the closing costs that buyers may encounter:
Origination Fees - Paid to the lender to process your mortgage application.
Appraisal Fee - Covers the cost of a property and home appraisal to determine the value of the property.
Title Insurance - Protects the buyer from any ownership claims against the property.
Mortgage Escrow Fees - This fee covers property taxes and homeowner's insurance held in an account until due.
Recording Fees - This fee covers the cost to officially record the deed transfer with the local government.
Attorney Fees (Optional) - These fees are for an attorney to review documents and ensure your interests are protected within the contract. This is an optional fee and only required in a few states.
Who Pays Closing Costs on a Home?
You may not know it, but when you buy or sell a property - both the buyer and seller typically shoulder some of the burden of the closing costs and fees. Each party is responsible for paying different fees connected with the sale. The buyer is typically responsible for - loan origination fees, mortgage escrow fees, title insurance, and appraisal fees. Sellers are responsible for fees that may include - realtor fees and commissions, recording fees, escrow fees, home inspection costs, transfer taxes, and any outstanding property taxes.
The exact division of closing costs can be negotiated as part of the purchase agreement and Realtor Jackie Giroux in Lawrence, KS can be a valuable asset in navigating these negotiations and ensuring a smooth closing process for your dream home.
Understanding the closing costs on a house – those fees that pop up at the end of your home purchase or sale – is crucial to a stress-free real estate experience. These costs will vary depending on your loan, location, sale price, and negotiations, but the good news is that Realtor Jackie Giroux is here to help. Jackie Giroux has the expertise you need to guide you through the closing process, help you negotiate closing costs, and ensure a smooth path to ownership in Lawrence, KS.
Contact Jackie today to turn your dream home into a reality!
