Closing Costs

There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.

Your trusted real estate agent will negotiate your purchase contract, also known as an earnest money agreement, based on your input and other factors including your expressed desire to purchase the property in question, competing properties or offers and other matters of import.

It is accepted as best practice to negotiate seller assistance with closing costs at first writing. Depending on negoitations and the particular loan guidelines of your particular financing choice(s) there may and probably are limiations on the amount of closing costs the seller can pay on a buyer's behalf.  The general guidelines are 0%, 3% or 6% of the purchase amount of the property.  In some cases the lender will limit the closing costs to the amount of the financing.

Closing costs and "cash to close" are two terms which are sometimes confused with one another and it is important to ascertain which is being provided.  Cash to close generally includes downpayment or other items not generally considered a closing cost per se.

Good Faith Estimate

Buyers  receive a "Good Faith Estimate" covering of closing costs when your loan application is first submitted.  These costs may be revised if the loan program changes or if there are substantive differences in the finalized purchase agreement. This good faith estimate is based on the loan officer's past experience and may not include all the closing costs.

If you have received a Good Faith Estimate from the Sam Croskell TEAM all usual and customary closing costs will be disclosed. Frequently this is not the case with other lenders as consumers have been led to believe that closing cost shopping is a wise activity, which it is to a point. But the dishonorable, incompetent or dishonest loan officer will just happen to prepare a "GFE" with a few critical closing cost dollar amounts omitted or significantly reduced.

I am happy to review any "Good Faith Estimate" you've been provided and answer questions or concerns you may have about closing costs.