In terms of buying a home, you would find various costs to be associated with it. One of them would include closing costs. For those of us who do not find ourselves to be fairly acquainted with it, these are the fees which would be associated with the purchase of a home. In fact, these would be paid at the closing of a Calgary real estate transaction, hence the original derivation of the name.
According to real estate terms, closing is the point of time when the title or ownership of property would be transferred from the seller to the buyer. However, the surprising this is that closing costs could be incurred by either the buyer or the seller.
Closing costs you can expect to pay
Therefore, if you are thinking about buying a house at some point in the future, you might be curious to find out the various range of closing costs that you might be expected to pay. In this way, you would be able to design and draw up your budget and then look for houses within that price range.
It would also be a good idea to know that closing costs would vary based on the property that you would buy, where you live, and the type of loan that you would choose. So, even though you might not find all kinds of the following closing costs to be included, it would definitely help you get a better idea about what you would be getting yourself in to.
- Application fee
The application fee would cover the cost for the lender to process your application. So before you submit your application, you should ask your lender what the application fee would cover. This could often include things like appraisal or a credit check for your credit scare. On the other hand, you would also find some lenders who would not charge application fees, hence that would be something that could easily be negotiated.
Another one of the closing costs which you might have to incur is appraisal. This is an amount which would need to be paid to the appraisal company in order to confirm the fair value market price of your home.
- Attorney fees
This would be paid to the attorney in order to review the closing documents on behalf of the lender or the buyer. However, this is something which would not be required in all states.
- Escrow fee or closing fee
In closing costs you can expect to pay, you might even find closing fee, also known as escrow fee. This would be paid to the escrow company, title company, or the attorney who would be conducting the closing. Again, you would find that some states would require the presence of an attorney at the time of closing.
- Courier fees
The courier fee would cover the cots of transporting documents in order to complete the loan transaction as quickly as would be possible.
- Credit report
A credit report would also be included in order to see your credit score and rating. This is because your credit score would play a big role in determining the interest rate that you would get on your loan.
Hence, these would help you get a better understand about how the closing process works.