What are closing costs?
Closing costs are the charges and fees that you pay when you buy a home. You have to pay a number of parties in order to get everything done while you’re at your closing (signing your paperwork and taking possession of your new home.) With careful planning and a buyer’s agent working for you, some of these charges can be avoided. However, there are some that you’ll have to pay no matter what. Figuring out which charges are unavoidable is your first step in paying less.
What charges go into your total closing costs?
Several factors determine your closing costs. Some of these costs are fairly easy to predict – loan origination fees and the fees paid to your attorney, for example. Prior to closing, you may have already paid fees for your inspection and appraisal, underwriting and to have the new title recorded. Other fees include title insurance and research fees, as well as escrow fees that might include property taxes and your mortgage insurance.
How much will you pay in closing costs in New York state?
Unfortunately, there is no easy answer to this, as closing costs vary per home and buyer. The average closing costs in New York state are roughly $4,000 on a $150,000 loan, assuming that closing costs are split between the buyer and the seller. In some cases, those fees could go as high as seven thousand dollars, but are rarely lower than three thousand. The Eberle Real Estate Experts may be able to get the seller to pay nearly all of your closing costs.
How can a home buyer avoid closing costs?
If you are trying to avoid paying those fees, you need to start with the seller. Your buyer’s agent may be able to negotiate and get the seller to take a larger share of the costs, reducing your fees. If a seller is looking to sell quickly — which many are — they will consider paying the costs, rather than losing a potential deal. You can also save a great deal of money by looking for lenders who will charge less to underwrite and originate your loan. Here’s a tip — try to close at the end of the month. That will reduce the interest you pay to any lender and will help you save some money.
Buying a Home in Albany, NY
Closing costs are a part of buying a home, but not something that should make or break a purchase. Don’t settle for what you are initially told or offered. Talk to your agent. They want to help you get the best deal you can get. You can always negotiate with your lender and seller to reduce costs. Your closing costs should always be as low as possible – and all it takes to lower them is to do a bit of work ahead of time.