This is a very important question for a home buyer because these costs are related to your home purchase and they are additional to the purchase price. The closing costs are expenses that are often ignored and not clearly explain to the buyer. The amount of these costs can easily add up to 2 to 5 % of the purchase price.
When you as the buyer
make your probably biggest live time investment you are certainly interested to
get your new home without any strings attached. To accomplish this goal you
have to know that there are some service expenses involved. However, not all
closings costs are paid by you as the buyer.
Parts of the closing expenses
are paid by the seller but you are the beneficiary. The seller paid costs are
the title and lien search to make sure that your title is clean and marketable.
The seller also pays his/her part of the service costs of the title company and
the documentary stamps for the transfer of the real estate property.
Your buyer part of the
closing expenses are the title insurance, the title service fees, the recording
fees at the court for your deed and the mortgage. The title insurance covers you as
the buyer in case an unrecorded lien is put on your property but the seller or
another former owner of your property is the debtor. Such a title insurance is a
must have so that you will have a good night sleep in your new home. The title service
fees and the court recording fees are mandatory to make sure that you are
correctly noted on all legally relevant public records and documents.
Besides these direct
related closing costs there are also the expenses for a home inspection, the
survey and the lender’s appraisal cost in case you take out a loan on the
property. Not every home buyer want these expenses and try to avoid them but
that can be a big mistake in the future.
This is only a short summary
and focused on a Florida real estate transaction. For more details you can
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