Closing costs are fees you pay when closing a deal or legally taking ownership of a property. How many fees you’ll have depends on the loan you choose, the area of your property, and what function it’ll have. Here are some of the costs you might be faced with when investing in real estate.

6 Closing Costs to Expect

1. Appraisal Fees

This is a fee you pay to real estate experts for any appraisals made to assess the market value of the home you’re buying.

2. Inspection Fee

Your new home will likely be inspected to confirm that its electrical and plumbing systems, as well the structure, comply with regulations. This will ensure the property is livable and that you’re making a sound investment.

3. Mortgage Application & Loan Origination Fees

These are paid to the bank or financial institution that lends you money to buy a home. Not all lenders charge or include this in your closing costs, and it may be part of other fees such as appraisal or credit report fees.

4. Property Insurance

Property insurance covers your home in case of disasters that cause damage. This is not always included with closing costs and can be paid before closing takes place.

5. Property Taxes

Buyers and sellers typically negotiate the portion they’ll pay of property taxes according to how long each was responsible for the house for the year. 

6. Points

If you decide on a points cost, in exchange for a fee, your interest rate is lowered. This is an option to pay more closing costs upfront so you end up paying less over the life of your loan.

Buying a property involves a long list of documents, fees, and services that must be completed to ensure a seamless transition. To help you deal with real estate transactions throughout Ohio, rely on All Points Title & Closing, Inc. in Hamilton, OH. Since 1986, this company has helped homeowners navigate title insurance, closing costs, title searches, and escrow services to land them their dream home. Visit their website to learn more about the team, or call (513) 863-7600 to set up an appointment.