Murfreesboro Realtor explains, What are closing cost? In Middle TN Real Estate for Sellers & Buyers

April 27, 2010 - PRLog -- What are closing cost and who pays them?

mbororealestate.com
Home of the no risk listings. The number one reason home owners who are thinking of selling are hesitant to sign up with Real Estate Agent is they are afraid of the long term contract. Now we’ve removed that problem. When you let us help you sell your house we will allow you to cancel the contract at anytime. If we are not living up to what you expect from a realtor or if for some reason you change your mind we will cancel the contract that day. Now that’s peace of mind.


In addition to the down payment, you'll also have to pay closing costs -- miscellaneous fees charged by those involved with the home sale (such as your lender for processing the loan, the title company for handling the paperwork, a surveyor, local government offices for recording the deed, etc.). The amount varies, but could be, say, $6000 on a $130,000 house. The range is all over the map -- from 1 to 8% of the price of the home, though more typically 2-3%. These costs are significant -- especially after you've already had to come up with a lot of cash for the down payment.
Your lender will give you a more accurate estimate of closing costs on the purchase of a particular house you've selected. (Don't ask me about this, ask your lender.) This is called a "Good Faith Estimate". If they don't give it to you, ask for it.
Make sure to get the Good Faith Estimate (GFE) from your Lender. Direct any questions about it to your lender and your realtor
Make sure there's no Yield Spread Premium on the GFE. If you use a mortgage broker and get a bad deal with an interest rate that's too high, the bank will give a kickback to the broker called a Yield Spread Premium If there's a YSP on the GFE, then you're paying too high an interest rate and should try to negotiate a lower one.
You can ask the seller to pay some of the closing costs. If you're short on cash for the closing costs and can't roll the closing costs into the mortgage, ask the seller if they're willing to pay part of the closing costs. It's not unusual for buyers to ask for this. Usually the worst that can happen is that they say no.
Get the lender to pay the closing costs. If you're short on cash for the closing costs and can't roll the closing costs into the mortgage, some lenders will pay part or all of the closing costs, but in exchange you'll have to pay a higher interest rate on the loan, perhaps 0.25% or 0.50% higher. Ask your lender if this is an option if you need it.

If you ever have any questions or need help with any real estate needs or know someone who does please feel free to call or email me anytime. I would love to have the opportunity to be your neighbor and realtor.

I never force a seller to continue to use me as their agent if they are not comfortable with my style or methods. I will allow you to cancel our contract at anytime you are not happy with me or you just change your mind.

Please feel free to call or email me anytime.
Mike O'Donnell
615-473-5684
Tema@comcast.net
mbororealestate.com

Home of the no risk listings. The number one reason home owners who are thinking of selling are hesitant to sign up with Real Estate Agent is they are afraid of the long term contract. Now we’ve removed that problem. When you let us help you sell your house we will allow you to cancel the contract at anytime. If we are not living up to what you expect from a realtor or if for some reason you change your mind we will cancel the contract that day. Now that’s peace of mind.

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As a FULL TIME realtor in Murfreesboro TN, I can and will devote whatever time is needed to help you meet your real estate needs.
I treat each client with respect and dignity whether the property you are interested in is worth $5000 or $5,000,000.