Once you’ve found your dream home in Charlotte NC and you’ve estimated your monthly mortgage payment, including all utilities and other maintenance costs, you may think you’ve wrapped up the cost section of the real estate transaction. However, there is one more set of costs you’ll need to consider before you can close the deal and receive your keys— closing costs.
Closing costs are often overlooked by first-time buyers or even buyers that have been out of the market for a while. You can easily figure how much you will owe in closing costs based on the mortgage loan amount of the home’s purchase price, but you will also want to keep the following in mind if you’re wondering who exactly pays what:
Closing costs can be negotiated
When putting together your offer on a home in Charlotte NC, you can ask for a credit toward closing costs. You may actually find this more beneficial than asking for a reduction in the overall purchase price as over the life of your loan, the discount will likely have little effect on your payment. A credit toward closing costs means you will have less to pay upfront and out of pocket when you get to the table.
Buyers have more expenses
The majority of a buyer’s closing costs come from the mortgage loan. Costs including the appraisal fee, origination fee, credit report fee, recording fee, notary fee, title insurance, prepaid insurance, and prepaid interest are the responsibility of the buyer and will need to be paid at the closing. If you have questions about any cost or fee, ask your lender to explain each and how it will affect your loan.
Sellers tend to pay more
While buyers in Charlotte have more closing costs outlined in their statement, sellers often pay more as they are typically responsible for covering the commission. This is based on a percentage of the total sale price of your Charlotte area home.
Let Michael Alan Realty guide you through the homebuying process this year! Contact us today with any questions about the local real estate market or for a list of available homes in the Charlotte NC area!
Michael Alan Realty Group
Phone: (704) 266-4220