Closing Costs: Demystifying the Fees of Homeownership with Susan Brewer Service First Real Estate

Congratulations! You’ve found your dream home in the St. Louis area. But before officially claiming those keys, there are some additional costs to consider: closing costs. At Susan Brewer Service First Real Estate, we understand this can be a confusing aspect of the home buying process. So, let’s break it down!

What are Closing Costs?

Closing costs are fees paid by the buyer (and sometimes the seller) to finalize the purchase of a home. These fees cover various services and expenses incurred during the transaction.

What’s Included?

• Origination fees: The lender’s charge for processing your mortgage application.
• Appraisal fee: An independent evaluation of the home’s value to determine loan amount.
• Title insurance: Protects you from any ownership claims against the property.
• Escrow fees: Covers property taxes, homeowners insurance, and other ongoing expenses held in a neutral account until closing.
• Attorney fees: Optional, but some buyers choose to have an attorney review paperwork.
• Recording fees: The cost to officially record the deed transfer with the county.

How Much are Closing Costs?

Closing costs typically range from 2% to 5% of the purchase price of the home. The exact amount will vary depending on factors like the loan type, lender fees, and any negotiated seller concessions.

Tips from Susan Brewer Service First Real Estate:

• Get a Loan Estimate (LE) early: This document outlines the estimated closing costs associated with your specific loan.
• Compare lenders: Different lenders may have varying fee structures. Shop around to find the best deal. We can help you connect with reputable lenders in the St. Louis area.
• Negotiate seller concessions: In some cases, sellers may be willing to contribute towards closing costs.

We’re Here to Help!

At Susan Brewer Service First Real Estate, we believe in a transparent and stress-free home buying experience. Our experienced agents will guide you through every step of the process, including understanding closing costs. Contact us today and let’s turn your dream of homeownership into reality!