What Are Closing Costs and How Much Are They?
Closing costs are the fees added to the purchase of a house to cover the expenses for taxes, transfer fees, a settlement fee to your attorney, title insurance firm and the lender. There are also fees that go to the city, county and the state government. Then there are the fees that are divided between the brokers, the surveyor, couriers and agents.
Closing costs typically range from 3 percent to 6 percent of the cost of the home. And closing costs will vary depending on your location, because each city, state and country has the authority to add more fees to your final costs. These added fees are also called ...
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If you don 't take the time to learn what the closing costs are and why you have to pay them for your particular loan, you open yourself up to being taken advantage of because lenders and brokers know that most people don 't know anything about real estate and can therefore be made to pay unnecessary or bloated fees. The best way to determine whether or not you are being overcharged on your loan origination fees, or any of the other fees for that matter, is to compare the loan origination charges, lender fees and your interest rate with other banks and lenders. This comparison must be more than a couple of lenders, if you want to get an accurate picture. Yes, this will take some time and effort; however, you could potentially save yourself thousands of dollars in the long run simply because you chose to educate yourself so you could avoid being taken advantage of.
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