Yes. Or maybe not... This is most definitely a conversation you need to have with your realtor and lender before putting in an offer on a property!
Closing costs can get pricey and if you are unaware of what they are estimated to be, you are not starting off on a good note. According to Google, buyers can be expected to pay anywhere from 2%--5% of the purchase price in closing costs.
But what do they include?
Loan origination fees to process and underwrite the loan. Price depends and varies by lender.
Appraisal (Sometimes paid upfront but not necessarily). Price varies: $400-$500
Taxes. Varies based on town. Anywhere from 3--6 months due for reserves at closing.
Title fees and title insurance. Price varies based on company chosen.
Home owners insurance. Price varies based on house and company chosen. One year's worth due at closing.
Prorations: fuel, condo or homeowner association fees, taxes. Varies based on closing date and whether seller has prepaid or not.
Tax Stamps. Split equally between buyer and seller. In NH: $7.50 per $1,000 of purchase price due from buyer. Example: $200,000 house would be $1,500.
What about the seller?
The seller pays the realtors commissions. Price varies.
Tax stamps. Split equally so they also pay $7.50 per $1,000 of sale price.
Preparation of new deed. Approximately $150-$200. Depends on length.
Is there help?
“Of course the seller can contribute”
It isn't uncommon for a seller to contribute something towards a buyer's closing costs. In this market, when dealing with multiple offers, it makes you a stronger buyer to not have to ask, but that is just not always possible. So of course the seller can contribute. There are also options for lenders to be able to help out! There are ways to make your offer appealing to a seller still if you just don't have the funds for closing costs, just ask me how!
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