For those buying a home in Nashville, they should understand the various costs that are involved. While most people are typically thinking about the down payment involved, they also need to be aware of the closing costs so that they are not left surprised after the purchase of their next home. Closing costs are in addition to the purchase price and cover various fees all in one.
What are Closing Costs?
Closing costs can include everything from recording fees, title policies, courier charges, inspections, and an impound account. This will range from 2 to 4 percent of the total purchase price, varying based on origination fees the lender charged for the loan.
Be aware that with the purchase of your new home, you will have recurring charges that are paid continuously. This includes items such as your property taxes, flood insurance, fire insurance premium, and prepaid interest.
Fortunately for buyers, there are some charges that will only be paid once and not regularly after the purchase of the home. For example, you will only pay one time for your title policies and escrow or closing. Other charges are a one-time fee such as:
- Attorney Fees
- Home Inspection
- Wire Fees
- Home Protection Plans
- State or City Transfer Taxes
Closing costs are typically in the thousands, so being aware that this will come up is very important as a buyer. For example, if your house cost $200,000 your closing costs could range from $2,000 to $8,000 or more. Sometimes a seller can credit the buyer for closing costs if they negotiate an offer that includes a seller credit.
Buying a home in Nashville is a wonderful investment, so being educated on the costs that come with this purchase will allow your family to be prepared.
The Ashton Real Estate Group of RE/MAX Advantage
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