Are you confused about closing costs you encounter as you buy a home in Dallas? If you are a first-time buyer, real estate terminology can become confusing. Most people will plan for a down payment, but closing costs catch them off guard.

Closing costs are fees in addition to a home's sale price. They are the fees corresponding to the settlement of a real estate sale. A closing (also called settlement) is the transfer of a home's ownership from the seller to the buyer. These fees typically range from 3 percent to 6 percent of the sale price, but can be lower or higher depending on multiple factors. At Door, however, all of our clients pay a flat $5,000 closing cost, no matter the value of the home. Check out our slider to see how much money you can save by working with us!

Closing costs include:

  • Lender Fees

  • Prepaid Interest

  • Private Mortgage Insurance

  • Title Insurance

  • Escrow or Closing Fees

  • Notary

  • Couriers

  • Inspections

  • Recording

  • State and Local Transfer Taxes

  • Home Warranties

  • Home & Flood Insurance

  • Property Taxes

  • More

There are two methods for avoiding closing costs. The first is having your lender roll these costs into your mortgage. It will cost you more over time because you are financing the costs. Nonetheless, there are advantages in some situations.

Another method is asking the seller to assist in paying the $5,000. We see this more often with first-time buyers, but ask your lender before making an offer. Some banks and mortgage companies have rules limiting or barring seller assist credits.

If you would like to talk more about closing costs when buying a home, or need more information, please contact a Door agent. It’s what makes us different!

 

(Image via 401(K) 2012, flickr)