When in Houston, Texas, and buying real estate, we should be aware of closing fees so that we can budget for them in the overall costs of buying our home. The cost of living is very affordable in Houston which is of great benefit. However, we can get caught out if we do not know the closing costs and so the true cost of buying our American dream space to live.
So, this article will demystify closing costs for you. Sites like https://houstonrealestateobserver.com/closing-costs-in-houston-texas/ could also be worth visiting if you would like additional information.
What Closing Fees Can a House buyer in Houston Expect to Pay?
Closing fees relate to the underwriting of a mortgage. They will include commissions, taxes, insurances, and record filing. They are all part of a house sale going through, satisfying legalities, and putting protections in place.
Common closing costs would include loan application fees, appraisal fees, inspection fees, taxes to do with transfer, escrow fees, and attorney fees. These are just to name a few. If you follow the link above, then you can find out them all to help you decide on the house price that will suit your budget when allowing for these. The true house cost can only be the one that includes all the costs. Then, after that, we will look to factor in living costs, such as grocery bills and home maintenance. The living costs are, of course, low in Houston, which is good for house buyers there.
Escrow fees are a portion of the closing costs that are associated with buying a home. They are paid directly to the escrow company, the real estate attorney, or the title company so that they will conduct the closing and so distribute the funds to the third parties that are involved in the deal.
Who Pays the Closing Fees?
The reason we should know more about closing fees is that they can be paid by the buyer and the seller. So, it may be we do not have to include all of them within our budget. But, on the other hand, this may only mean that we pay a higher purchase price for our house to the seller to allow for them. It is swings and roundabouts in that respect. The important thing, however, once you have agreed on a house price, is to know which closing fees that you are liable for as the buyer.
How Much are Closing Costs Likely to Be?
Generally, sellers will pay real estate commissions to the buyer’s and seller’s agent. This will amount to closing costs of a total purchase price, with half the percentage to each. In addition, sellers will pay the buyer’s title insurance policy. This is a low-cost add-on to the lender’s policy.
In Texas, specifically, a seller will pay anything from 5% to 10% of the sale price and the buyer anything between 3% and 4% of closing costs. These are figures just to give you an idea, but it is worth finding out exactly what they might be before making a house purchase. It is about being prepared for all the costs and not just the price of a Texan house.
To conclude, we can better understand closing fees by knowing the different sources of the fees, knowing who will pay which, and then factoring in how much these fees will mean we pay. It is about good budgeting to know what many might consider hidden fees, although many real estate sellers are happy to share the information with you when you ask. Hopefully, because of this article, you will now feel that you know the true cost of buying a home. This will help you to make that purchase decision in Houston, Texas; a place famous for space exploration to be in awe of, air conditioning for our comfort, and the energy industry that keeps our homes powered.
It is a wonderful place to live with plenty of opportunities for development and lots of facilities to enjoy. Houston residents will look forward to welcoming you to their community.
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