Those who are looking to buy a home in Texas or any other state will need to account for closing costs. On average, closing costs total up to 7% of the home’s purchase price. This means that a person who bought a home for $100,000 would pay up to $7,000 in fees. It is worth noting that sellers must also typically pay closing costs, and their costs total up to 3% of the home’s sale price.
Buyers will pay a variety of costs, including a loan origination fee as well as fees related to assessing their credit worthiness. There may also be fees charged to appraise the home and perform a title search. In some cases, a buyer will need to pay private mortgage insurance if they don’t put at least 20% down when the sale closes.
A person who is buying a home may pay a fee to the lender in exchange for a lower interest rate. It may also be necessary to pay attorney fees and put money into escrow that will be used to cover mortgage insurance and property tax payments. Sellers can also expect to pay a fee to their attorneys as well as to their real estate agent. They may have to pay sales and other taxes when the transaction officially closes.
Those who are looking to buy or sell a home may need to do so with the help of a real estate law professional. This person may be able to review a purchase contract or review documents before they are signed on the day that the sale closes. If a dispute arises between the buyer and seller, an attorney may be able to help resolve it in a timely manner outside of court.