What Are Closing Costs, and Do You Have to Pay Them?

If you’re currently house hunting, closing costs will soon come into play. A lot of times, buyers are unprepared to pay these fees when they land a purchase, especially since they’re not included in listing prices. To help prepare you for these costs, Carthage Savings & Loan takes a look at what they are and answers an important question: do you have to pay them?

What Are Closing Costs?

Put simply, closing costs are the fees you pay at the end of a real estate transaction. Both buyers and sellers incur these costs, and they can be used as a part of the bidding negotiation. This means that if you are buying a house in a competitive market, you can offer to pay a portion of the seller’s closing costs to increase your chances of landing the property. Alternatively, a seller could offer to cover some of a buyer’s closing costs to sweeten their offer. Buyer’s closing costs typically equal around 3-5% of the property’s purchase price, which can add up to be thousands of dollars.

Types of Closing Costs

Not all closing costs are the same. If you are selling a house, your closing costs will commonly include the following fees:

• Real estate commission – portion of a sale price that is paid to the seller’s and buyer’s real estate agents
• Title transfer fees – cost of transferring the legal ownership documents to the buyer

On the other hand, if you are buying a property, your closing costs will look a bit different. Some common buyers’ costs include the following:

• Lender fees – items payable in connection with a buyer’s loans
• Third-party fees –charges paid for services like home inspections, attorneys, and more
• Homeowner fees – property taxes, homeowner’s insurance, and homeowner’s association dues (if applicable)

No Closing Cost Mortgage Program

With so many different fees included in your closing costs, it can feel overwhelming to think about paying so much after you’ve already made a home purchase. However, with the help of Carthage Savings and Loan, you might be able to avoid them altogether.

When you bank with us, you can apply for our convenient No Closing Cost Mortgage Program, and if you’re approved, you’ll enjoy a host of benefits. With little to no down payment required, we will pay your normal closing fees for you, including a title search, New York State mortgage tax, and filing charges. As one of our most popular programs, it includes all of the following products:

• First Time Home Buyers
• Purchase-Conventional Loan
• Refinance
• Home Equity Loan
• Home Equity Line of Credit

By choosing one of our No Closing Cost Mortgage Program products, you can eliminate the stress of closing costs and focus on your new home. If you’re interested, you can fill out our prequalification application to quickly determine your eligibility.

Work with Carthage Savings & Loan

Don’t let closing costs prevent you from enjoying your new home to the fullest extent. Instead, become a member of Carthage Savings & Loan, where you can borrow from one of the strongest and safest banks in New York. For more information or to apply for a No Closing Cost Mortgage Program product, contact one of our loan officers or visit your nearest Carthage Savings & Loan location today.