A Quick Guide to Closing Costs in Lexington, KY

When buying a home, especially a first home, people can be very confused about the process. The process is much more difficult than it seems, which makes sense seeing as purchasing a home is a big step in life. Among the many areas of home buying that make new home buyers and sellers weary are closing cost fees. Avoid the dread and let Hometown Lenders give you a quick guide to closing costs that will make you feel more at ease during the buying and selling process.

To put it simply, closing costs are the fees that are paid at the end of a real estate transaction. This cost is usually paid when the title of the home is transferred from the seller to the buyer, officially ending the home-buying process. These costs can be paid by the seller or the buyer of the home based on what the two have agreed upon.

Closing costs can cover a very wide range of seller negotiations. An origination fee for processing a new loan, a credit report fee, which is also required when processing a new home loan, and down payment costs are frequently seen within closing costs. Because these are both required fees for the home buyer, they are put into the closing costs as reimbursement after purchase. Appraisals and home inspections are both required for buying and selling a home. These costs will also be included in closing costs if both parties agree. Certain aspects about the title of your home is another frequently used closing cost. The title search, which helps determine the history of your home to see the marketability of the property, and title insurance, which covers the interest payments in case there is a legal defect are common.

The list of items that can be included in closing costs is long, but on average, home buyers should expect to pay between 2 and 6 percent of the purchasing price of their home. This may seem like a lot of money, but lenders typically prepare customers for these costs in their loan estimates and will list what the costs of closing will be on their home, so sellers can be aware. Many closing cost fees are negotiable, and your realtor and lending agent can advise you on specific negotiations. You can also shop around for lenders to make sure you are getting the lowest rates possible when closing.

Every state and city have different closing cost norms. Depending on the market in the area that you are buying or selling, your costs maybe higher or lower. To ensure the best experience when it comes to establishing and negotiating the closing costs for your home or the home you are looking to purchase, the experts at Hometown Lenders are who you need to call. We have locations conveniently located in Lexington, Kentucky and the surrounding areas, as well as across Tennessee. Hometown Lenders will ensure a smooth and streamlined lending process. With experience working with realtors all over the area, Hometown Lenders is a guaranteed way to ensure the closing costs you are seeking for your home. For more information about mortgage services and the steps you need to take to buy a home, contact Hometown Lenders today! Please call us today at 859-475-1323 to schedule a consultation.