Closing Costs

Regardless of whether you’re the buyer or the seller you’re going on incur some sort of closing costs. Closing costs are essentially the finishing costs that will finalize the sale. During the pre-approval phase of the loan process you can actually get an estimate of the total closing costs.

If you’re a buyer you can actually negotiate with the seller to incur some of the closing costs. This is where it’s helpful to work with a Lake Tahoe real estate professional, as they’ll know the ins and outs of real estate negotiation.

Below you’ll find some of the most common closing costs to look out for, as well as our answers to our most common closing cost questions:

Title Insurance Premium

The title insurance premium is paid by the buyer to insure he has a title that’s marketable, or it can be used for the lender in order to insure their lien position.

Real Estate Commission

The real estate commission is the fee that’s paid to the real estate broker for their services. These service usually include listing, showing, and selling the property, as well as finalizing the transfer of the property into their client’s hands.

Transfer and Assumption Charges

These charges are charged by the lender so a new purchaser can take over a loan that already exists.

Recording Fees

The recording fees are fees assessed by the Nevada County recorder’s office in order to record the real estate transaction.

Loan Fees

Loan fees are the initial fees charged by your lender while your new loan is being processed. These fees usually include things like the origination fee, which relates to processing loan paperwork, and the credit report processing fee.

Escrow Fees

Escrow fees are fees that are charged by a local Lake Tahoe title company. These fees come from documentation preparation process that finalizes the real estate transaction.

What Can I Expect To Pay In Closing Costs?

Most home buyers will end up paying between two to five percent of the price of the home in total closing costs. Usually, you can receive an estimate from your lender when you apply for a loan.

Can Closing Costs Be Avoided?

In some instances closing costs can be avoided in their entirety. For instance, you could receive a no-closing mortgage in which the added closing costs are usually covered by a higher interest rate, or can end up being bundled with the final costs. Another option is to also negotiate with the seller so that they cover the closing costs.