One of the most common questions we get asked at Fred Sed & Associates is “what are my closing costs?” and this is a question that both buyers and sellers have to ask since both will have to pay a portion of the closing costs.
In today’s post we will break down the closing costs you can expect to pay if you are in the process of buying or selling a home in Orange County.
Closing Costs for Buyers
During the process of buying a home you can expect to pay the following costs: escrow fee, title fee, origination fee, cost of appraisal fee, cost of notary, home warranty and cost of inspection fee.
In California the average buyer can expect to pay about 1.5% of the homes purchase price in closing costs, although in some states you could be required to pay closing costs as high as 5% of the homes purchase price.
Example: Let’s say you’re buying a home which costs $500,000, the closing costs which you can expect to pay will be about $7,500.
Tip – Your lender is legally required to provide you with a Good Faith Estimate (GFE) of the closing costs you can expect to pay when you apply for a mortgage loan and many of your closing costs can change by up to 10 percent by the time of your closing.
If you’re selling a home in Orange County, or elsewhere in the United States, you can expect to pay closing costs for escrow fees, title fees, possible termite inspection fees and you also may be required to pay some fees for paying off your mortgage loan.
As a seller the most important fees which you can expect to pay are the Real Estate Agents commission and also the listing agent’s commission as well.
Do you have questions about closing costs? Contact Fred Sed & Associates today by calling us at (949)272-0125