Closing Costs: Buyer’s Responsibilities

​Understanding the distribution of closing costs is essential for buyers to anticipate expenses and negotiate effectively.While both buyers and sellers incur closing costs, buyers typically shoulder a larger portion, covering various fees associated with securing a mortgage and finalizing the property purchase. ​

What closing costs should buyers anticipate, and can these expenses be negotiated?​

Buyers can expect to pay closing costs such as loan origination fees, appraisal fees, title insurance, and recording fees, among others. These costs generally range from 2% to 5% of the purchase price. It's important to note that many closing costs are negotiable; buyers can discuss with sellers the possibility of covering certain expenses or offering concessions to reduce the buyer's financial burden. ​

 

When it comes to closing costs, the BUYER is generally responsible for the following expenses:

Title Insurance Premiums
(ALTA Loan Policy)

Escrow Fees
(50% of the total fee)

Document Preparation Costs
(if applicable)

Notary Fees

Messenger, Overnight, or Courier Fees
(if used)

Tax Proration
(based on the acquisition date)

Homeowner Association Fees
(as outlined in the contract)

All New Loan Charges
(excluding those the lender requires the seller to pay)

Assumption or Record Change Fees
for taking over an existing loan (per the contract)

Recording Fees
for official document filings

Beneficiary Statement Fees
for assuming an existing loan (according to the contract)

Inspection Fees
(e.g., roofing, property, geological inspections)

First-Year Fire Insurance Premium

Buyer’s Share of the Sub-Escrow Fee

Escrow Loan Tie-In Fee

These are typical costs that the buyer will cover, though the exact fees may vary depending on the specifics of the sale agreement.

I recently completed a real estate transaction with Lakeside Escrow, and their professionalism blew me away. From start to finish, their team was incredibly responsive and took the time to explain every detail. I never felt rushed, and every question I had was answered promptly. The entire process felt seamless, and I had total peace of mind knowing my funds were secure. Highly recommend!

Arthur B.

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