Well I recently had my past client Roger who bought a home in Pembroke ask me this same question; my response was you first need to know what closing costs are. I went on to explain that the seller does experience closing costs and they would be paying a $4.56 per every $100 on a sale price as a state tax also called “tax stamps”. A seller in MA also needs to obtain a smoke certification around $75, along with supplying a new deed around $100 to the new owner.
Now a buyer’s closing costs are significantly different along with being more expensive. A buyer’s closing costs consists of an appraisal fee, credit fee, processing and underwriting fee, also including closing attorney fees along with a title search fee. As Jason Gravelle, branch manager of Advanced Mortgage Services out of Braintree tells me all of these fees will be illustrated and disclosed on a Good Faith Form along with a Truth and Lending Form. By having your lender describe all these fees up front you will avoid being surprised at a later date.
Is it true that closing costs are becoming more expensive for a buyer? Yes they are; closing costs are up 8.8% from last year according to a survey from Bankrate. Analysts attribute the increase to lenders having to do extra work approving applications due to the scrutiny and tighter lending regulations. So the next time you sit down with your lender please make sure you know up front what all your costs will be in order to assist you in your choosing your lender.
Do you have questions you want answered, please feel free to communicate back with me.
John Connolly, Vice President
SUCCESS! Real Estate
john@johnconnolly.com