What is Closing Cost When Buying a Home in Chandler AZ?
When you are buying a house or selling a house in Chandler AZ, you will need to pay closing cost. For Buyer, closing cost are fees – charged by lenders and third parties – related to the purchase the home on top of down payment and principal and interest. Most of the time, the home buyers to pay the closing cost. However buyers and buyer’s agent can negotiate with the seller to pay. Some loans such as VA loan, seller to pay portion of the closing cost. Closing cost are paid in closing of escrow. Here are typical list of closing cost when buying a home in Arizona.
What are Closing Costs?
Closing costs are the fees or expenses, that buyers and sellers to pay to complete a real estate transaction. Buyer will pay buyer’s closing cost and seller will pay seller’s closing cost. Closing costs are to be paid during closing process.
What are the Charges in Buyer Closing Cost?
Buyer’s closing cost often include:
- Down payment
- Credit Report fee
- Inspection fee (Home, Termite)
- Loan Origination fee, which lender charge for processing the loan
- Appraisal fee required by lender
- Underwriting fee
- Discount Point, which upfront fee you pay to lower interest rate
- Lender Title Policy
- Recording fee, which pay to the county to record the purchase
- Private Mortgage Insurance (PMI)
- Prepaid interest, property tax, HOA
- Home Warranty
- Hazard Insurance also refer as Homeowner Insurance
- and Others
How Much is the Buyer Closing Cost?
For home buyers, the closing cost typically range between 2 – 5% of the purchase price. If your home cost $200,000, you might pay between $4,000 – $10,000 in closing cost.
Who Pays Closing Costs?
Both buyers and sellers pay their own closing costs. However, the buyer usually pays most of them. Buyer and buyer agent can negotiate with a seller to help cover closing costs. However, there are limits on the amount that sellers can pay toward buyer’s closing costs. Sellers can only contribute up to a certain percentage of your mortgage amount, which varies by loan type.
How can Buyer Avoid or Lower Closing Cost?
As a home buyer, you get to choose which mortgage company you want to work with. Don’t be afraid to take some time to shop around for lenders. Contact a few lenders and ask what types of fees they charge. Choose a lender that offers low fees and competitive interest rates for lower overall closing costs.
Buyer and buyer agent can also negotiate with seller to pay all the closing cost or portion of it. Buyer also can negotiate with their lender to pay part of the loan fees.
Skilled Negotiations can Save You Money
It is very important to work with a Realtor with experience negotiating. We can negotiate for all closing costs to be paid by the Seller. This keeps more money in your pocket. If you qualify for a VA loan, we can negotiate terms which require no money down.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Chandler AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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