Calvin Law's Blog
Closing costs are usually an unavoidable part of buying a home. While there are ways to reduce some closing costs and fees, they are an expense you will likely have to consider when it comes time to save for a home.
On average, buyers can expect to pay between 2 and 5 percent of the purchase price in closing costs and fees.
In this article, we’re going to break down those costs and talk about some ways to plan for, or limit, the fees associated with closing on a home.
A breakdown of closing costs
Most closing costs in a real estate transaction are paid for by the buyer. When getting approved for a mortgage, your lender is required to provide you with an estimate of the closing costs. This is called a “Closing Disclosure statement” which overviews the details of your loan.
Different lenders will charge varying amounts in fees. Some are even willing to waive certain fees. But, we’ll discuss that later.
For now, let’s focus on the closing costs buyers typically have to pay:
Attorney fees - a flat-fee or hourly rate depending on the attorney
Origination fees - an upfront fee charged by the lender for processing your mortgage application
Prepaid interest or discount points - a payment for the interest that will accrue on your mortgage from the time you close until your first mortgage payment is due
Home inspection fee - the fee that a professional home inspector charges to inspect a home
Escrow deposits - Usually split with the seller, this is the fee charged by an escrow agent
Recording fees - fees for legally recording the new deed and mortgage
Underwriting fees - fees paid to the lender for researching your mortgage case and determining whether or not to approve your application
These are just some of the many fees that can be due upon closing on a home. Depending on where you live, which lender you choose, and the type of mortgage you secure, your closing costs will vary, so it’s a good idea to shop around for a lender and mortgage type with reasonable closing costs.
Reducing closing costs
Some lenders offer no-cost, or low-cost mortgages. However, these savings often come with a higher interest rate which, over the lifespan of your loan, can cost you more in the long run.
You should also be aware of the different loan types that you may be eligible for. FHA loans, USDA loans, and VA loans are all designed for buyers hoping to make lower down payments on their home.
Each loan type provides different amounts due at closing. Fortunately, your mortgage lender will be able to give you an estimate of costs for each loan type.
Want to get an estimate of the closing costs you’ll have to pay when you buy a home? You can use this online calculator to see an average.
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Smart home devices are becoming increasingly popular among U.S. property owners. Yet deciding which smart house gadgets – if any – are right for you may prove to be difficult. Fortunately, there are several things that you can do to determine if a smart home device is a must-have, such as:
1. Consider a Smart Home Device's Purpose
A smart home device that works well for one homeowner might fail to meet the needs of another property owner. If you assess a smart home device's purpose closely, you can determine if a particular gadget matches your expectations.
For example, if you are searching for a quick, easy way to keep your home's floors dirt- and debris-free, a smart robot vacuum may be ideal. This vacuum will take the guesswork out of cleaning your house's floors. Best of all, this device will allow you to speed up the process of vacuuming your house.
On the other hand, if you are on the lookout for energy-efficient lighting, smart light bulbs could provide viable investments. These light bulbs are simple to install throughout a house. Furthermore, smart light bulbs will continue to perform for an extended period of time.
2. Evaluate Your Finances
Your budget may dictate your smart home device investments. If you analyze your finances, you can establish smart home device priorities. Then, you can gradually integrate smart home devices into your residence.
It usually is a good idea to take a slow, steady approach to smart home device purchases. If you try to do too much at once, you risk spending beyond your means to acquire and install smart home devices across your residence.
3. Shop Around
There is no shortage of state-of-the-art smart home devices available at both online and brick-and-mortar retailers. Thus, if you conduct an in-depth search for smart house gadgets, you may find quality devices that won't force you to exceed your budget.
Of course, if you shop around for smart home devices, you can differentiate between average gadgets and best-in-class ones. You also can use online tools and resources to learn about different smart home devices and select gadgets that will perform consistently.
4. Keep Things Simple
Investing in smart home devices should be a fun, exciting experience – not a stressful one. If you feel overwhelmed as you search for smart home gadgets, take a step back and review your options. This may help you alleviate your worries and re-start your search for smart house gadgets with a fresh perspective.
Lastly, it sometimes helps to collaborate with family members and friends as you shop for smart home devices. Family members and friends can help you weigh the pros and cons associated with smart house gadgets. With the support of family members and friends, you could boost the likelihood of making an informed smart home device purchase.
Take advantage of the aforementioned tips, and you could pick up a wide range of smart home devices that will help you transform your ordinary house into a spectacular residence.
A home seller may dread the thought of dealing with an aggressive property buyer, i.e. an individual who submits many requests for property improvements or price reductions prior to the closing of a home sale. Fortunately, we're here to help you take the guesswork out of dealing with an aggressive homebuyer.
Now, let's take a look at three tips to help a home seller get the best-possible results when he or she deals with an aggressive property buyer.
1. Keep Your Cool
Let's face it – an aggressive homebuyer may test your patience. But if you remain calm, cool and collected when you deal with an aggressive homebuyer, you may be better equipped than ever before to accomplish your desired home selling results.
Remember, the ultimate goal of the house selling journey is to maximize your property sale earnings. If you remain open to communication with a buyer, both you and this individual can work together to find common ground. And as a result, you and a buyer can collaborate to achieve the optimal results.
2. Know Your Options
If a buyer makes exorbitant requests during the home selling journey, it is important to keep in mind that you have options. And if problems start to escalate, you may be able to walk away from a property selling agreement.
For example, if an aggressive buyer conducts a home inspection and asks for a massive price reduction following the evaluation, you can still negotiate with this buyer. And if you and the buyer cannot come to terms, there is no need to stress. At this point, you can move on from a potential home sale and re-list your residence.
3. Hire a Real Estate Agent
Dealing with an aggressive homebuyer can be worrisome. For sellers who want to avoid the potential dangers associated with dealing with an aggressive buyer, it may be beneficial to hire a real estate agent.
In addition to guiding you along the property selling journey, a real estate agent is happy to help you negotiate with a buyer and his or her agent. That way, you can boost the likelihood of enjoying a quick, profitable house selling experience.
Typically, a real estate agent will serve as a liaison between you and a buyer. And if a buyer requests property upgrades or a price reduction prior to closing day, a real estate agent can offer recommendations about how to proceed with these requests.
A real estate agent also is available to respond to any of your home selling concerns or questions. This housing market professional understands the property selling experience can cause a seller to worry, especially if this individual is forced to deal with an aggressive buyer. But with a real estate agent's assistance, a seller can take the necessary steps to minimize potential property selling hurdles.
Simplify a negotiation with an aggressive homebuyer – use the aforementioned tips, and any home seller can seamlessly navigate a negotiation with any buyer, at any time.
If you want to enhance a home's interior before listing a residence, it often pays to hire a professional cleaning company.
Ultimately, there are many reasons to work with a home cleaning company, such as:
1. A home cleaning company can quickly and effortlessly clean a house, regardless of size.
A home cleaning company employs friendly, diligent professionals who will do whatever it takes to transform your house's interior from drab to fab.
Typically, a home cleaning company will learn about your home interior goals and help you set realistic expectations. The company then will send out professionals to clean your residence from top to bottom and ensure that you are satisfied with the final results.
With the right home cleaning company, you won't have to worry about how your home will look to potential buyers. In fact, a home cleaning company will go above and beyond the call of duty to guarantee that your house is show-ready in no time at all.
2. A home cleaning company can help you save time.
If you're in a hurry to get your house ready for the real estate market, a home cleaning company can provide plenty of assistance.
In most instances, it won't take long to find and book a home cleaning company. Many professional home cleaners are available in cities and towns nationwide. And if you reach out to a home cleaning company today, you can set up an appointment to get your house cleaned in the next few days or weeks.
Perhaps best of all, a home cleaning company guarantees that you won't have to spend time cleaning your house's interior. Instead, you can leave your home cleaning to a team of professionals and focus your time and energy on other home selling tasks.
3. A home cleaning company can offer long-term recommendations.
After your home is cleaned, you'll want to do everything possible to keep your house looking great until it sells. Fortunately, a home cleaning company can offer expert recommendations so that you should have no trouble maintaining a pristine residence.
Usually, a home cleaning company is happy to respond to any concerns or questions, at any time. As a result, this company will provide an unforgettable home cleaning experience, one that makes it simple for you to bolster your home interior's appearance.
If you need extra help as you evaluate the home cleaning companies in your area, you may want to consult with a real estate agent. In addition to helping you get the best price for your residence, a real estate agent can put you in touch with local home cleaning companies. That way, you won't have to search far and wide to collaborate with a proven home cleaner.
Ready to list your house? Schedule a cleaning with a professional home cleaner – you'll be thrilled you did. If you clean your home, you can improve your home interior's appearance and help your residence stand out to potential buyers.