When buying real estate in Charlotte NC, closing costs are not the same as your down payment. Closing costs for buying a Charlotte NC home are charges and costs associated with closing the home purchase.
Basically, closing costs are the charges associated with all of the components of getting the property transferred successfully to you the buyer.
Since closing costs depend on the property you’re buying and your loan, there’s no one-size-fits-all formula to specifically calculate what your closing costs will be before you find the right house. As a general guideline, closing costs “can” average anywhere from 3%-6% or so of the purchase price.
Some of the typical closing costs when buying real estate in Charlotte NC include:
– Pro-rated real estate taxes (buyers owe from the date of closing through the year’s end)
– Pro-rated homeowners association dues (from date of closing through the end of the current billing cycle)
– Attorney fees (can average anywhere from $400-$600)
– Costs of obtaining the loan (your lender will consult with and educate you about these costs)
– Homeowners insurance (for one full year)
– Mortgage interest (from the day of closing through the end of that month)
– Title search
– Title insurance (lender and owner coverage)
– Recording/courier costs
– Inspection fees (for home and pest inspections)
– Home warranty (can be paid by buyer or seller)
– Escrow contributions (monthly real estate tax and insurance to set up any escrow account with your lender)
Many of these closing costs depend on the specifics of the home you’re purchasing. For example real estate taxes, homeowners dues, homeowners insurance will all depend on the house/property you’re buying.
The mortgage closing costs should be part of your conversation with your Charlotte NC mortgage partner. Since you’ll be obtaining a pre-approval for your Charlotte NC home purchase, the time to consult with your Charlotte mortgage partner is before you’re under contract and heading to closing!
Related Articles: How To Estimate Charlotte NC Real Estate Taxes
Copyright©2009 by Diane McDermott, All Rights Reserved, “Closing Costs When Buying Real Estate In Charlotte NC”