How much on average are closing costs?
In our market, typically closing costs, are typically 2.5-3% of the purchase price of the property. This includes the title fees, recording fees, prorated taxes for the time you’re in the property. The title company will also look at the abstraction of title to make sure the property is being sold by the people who are supposed to be selling it. They will pull the bank’s appraisal fees, flood certification fees, loan charges (if you’re getting a mortgage), your first 2 months of your home owner’s insurance are collected as well as your property taxes going to escrow. the title policy- both lender’s required and if you purchase a title policy which should you be purchasing one, which is highly suggested. These fees are allocated as debits and credits on the settlement statement, and good agent will review this prior to settlement to make sure nothing is being paid for twice, or “outside of closing” and then again on the settlement statement. They review this and then approve it with title.