Buyer closing costs can be different for every Hill Country home buyer. Since these costs can vary from transaction to transaction – I’ve compiled some information on the different aspects that may be associated with buyer closing costs.
There can be a variety of lender fees associated with your loan including an origination fee and multiple others. As mandated by federal law, your lender is required to provide you with a detailed account of all fees incurred throughout the transaction.
An escrow account, or an impound account, is an account set up in order to secure property tax and insurance fees. At least a portion of these fees is to be placed in the escrow account as closing costs.
Title companies will charge a fee for processing the homes escrow account. The price is generally regulated and is fairly close in price regardless of the company. This fee is generally roughly $700 that is split evenly between the buyer and seller.
Lenders often require an appraisal in order to justify the amount being borrowed. Appraisals are taken care of through an Appraisal management company in order to make sure the appraisal is fair. The seller will often offer to pay the four to five hundred dollar appraisal fees for a single-family home.
The two most common kinds of title insurance are the owner’s title policy and the lender’s title policy. These policies ensure clear titles to the owner and lender. In most cases, the buyer will pay for the lender policy and the seller will pay for the owner policy.
Buyers are generally required to pay the first years worth of homeowner’s insurance at closing.
In general, the buyer’s closing costs usually consist of roughly three percent of the total purchase price. It is important to discuss closing costs and financing with your lender before going through with any final transactions for your Hill Country home.