How Much Are Closing Costs

How Much Are Closing Costs Going To Be In Tucson AZ

Find Out How Much Are Closing Costs For Buyers and Sellers In Tucson AZ

How much are closing costs going to be?

How Much Are Closing Costs

We frequently hear this question from our clients whether they are buying or selling a home in Tucson AZ. New regulations on mortgage lenders, appraisers and title companies have, in general, increased closing costs.

What are closing costs?

Closing costs are incurred by both the buyer and seller of a Tucson home. For a buyer, closing costs will be added to the purchase price of a home.

For a buyer, typical closing costs will include costs and fees related to:

  • New loan or loan assumption fees
  • Deed and mortgage recording fees
  • Title insurance to lender
  • Escrow fee (Shared w/Seller)
  • Reimbursement to seller for prepaid taxes
  • Reimbursement to seller for prepaid HOA fees
  • HOA transfer fee (if not paid by seller)
  • HOA capital fee (if not paid by seller)
  • Appraisal and inspection fees
  • Prepaid Interest on new loan
  • Wood Infestation/Termite inspection
  • Property Insurance
  • Home Warranty Policy (If not paid by seller)
  • Realty Company “document handling/storage” (NOT all Realty Companies do this)

For a seller, closing costs will reduce the proceeds received from the sale of the home. For a seller, typical closing costs will include cost and fees related to:

  • Costs of clearing title
  • Certificate of title
  • Title insurance to buyer
  • Escrow fee (Share with Buyer)
  • Interest in arrears on mortgage loan
  • Prepayment penalty on old loan
  • Unpaid property taxes
  • Home Owner Association transfer fees
  • Home Owner Association assessments
  • Home Warranty Policy
  • Realty Company “document handling/storage” (NOT all Realty Companies do this)

It is worth noting the Realty Company “document handling/storage” of about $300 is only charged by some Tucson Realty Companies – NOT ALL!

That means both buyers and sellers should be asking the agent they use how much are closing costs going to be if I use you and your company. Most won’t disclose the fees will be charged until it appears on your settlement statement. Save yourself $300 and choose a realtor and Realty Company that doesn’t charge that fee.

We will answer the question NOW – Tierra Antigua Realty – DOES NOT charge either buyers or sellers a document handling/storage fee.

Who Pays Closing Costs

Some closing costs result from legal requirements. Others costs may be a matter of local custom and practice. The Tucson Home purchase contract and related addendum identify which party – buyer or seller – will pay which closing costs.

However, these can be negotiated as part of the Tucson homes purchase or selling process. This means getting the final answer to “how much are closing costs” will depend on you and your Realtors ability to negotiate.

Also, understand how much are closing costs going to be is directly related to the date the ownership of the property changes from seller to buyer. This makes the seller responsible for expenses for the period that they owned the property. The buyer becomes responsible for expenses accrued from the date they take title.

Talk To Your Lender

Please note, there are special considerations and limits on these expenses and who pays closing costs on VA or FHA financing. Specific closing costs are identified to be paid by the seller or buyer. Ask the realtor/real estate consultant representing you what these include.

While your Realtor may be able to provide “estimates” for some of the closing costs, your lender is responsible to identify all closing costs on their “Good Faith Estimate”. The Good Faith Estimate or GFE will be provided to you within 3 days of identifying the property you are buying.

A Final Closing Statement will be provided by the title company a few days prior to the Close Of Escrow. The Final Closing Statement shows all closing and adjustment costs along with how any prepaid and unpaid expenses for the Buyer and Seller.

Conclusion

Both Buyer or Seller need to understand their financial obligations before signing any closing documents. Ask your Realtor for assistance or additional information to help you through this important step in the real estate transaction.

Tucson Home Buying Process and Tucson Home Selling Process provides additional insight for Tucson Home Buyers and Sellers.

If you are moving to Tucson for a new job or that place to retire, we can help!

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How Much Are Closing Costs was last modified: June 15th, 2015 by ben4wp

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How Much Are Closing Costs was last modified: June 15th, 2015 by ben4wp
How Much Are Closing Costs was last modified: June 15th, 2015 by ben4wp

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