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Closing Costs

The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.

Buyer closing costs
When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:

  • The down payment
  • Loan fees (points, application fee, credit report)
  • Prepaid interest
  • Inspection fees
  • Appraisal
  • Mortgage insurance
  • Hazard insurance
  • Title insurance
  • Documentary stamps on the note

Seller closing costs
If the seller has not yet paid for the house in full, the seller's most important closing cost is satisfying the remaining balance of their loan. Before the date of closing, the escrow officer will contact the seller's lender to verify the amount needed to close out the loan. Then, along with any other fees, the original loan will be paid for at the closing before the seller receives any proceeds from the sale. Other seller closing costs can include:

  • Broker's commission
  • Transfer taxes
  • Documentary Stamps on the Deed
  • Title insurance
  • Property taxes (prorated)


Negotiating Closing Costs
In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the plumbing, the seller may agree to pay for the house inspection.

Likewise, a buyer may want to save on up-front expenditures, and so agree to pay the seller's full asking price in return for the seller paying all the allowable closing costs. There's no right or wrong way to negotiate closing costs; just be sure all the terms are written down on the purchase agreement.

Prorations
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed.

Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

 

 

 

 



 

 

Escondido Real Estate
A community rich in history and culture, Escondido is home to wonderful antique shops, fine-dining, and state-of-the-art theater at the California Center for the Arts, Escondido. The center's $81 million complex is dedicated to presenting performing and visual arts, and is a full-service conference center. In addition to a spectrum of things to see and do, the area around Escondido includes the San Diego Wild Animal Park, San Pasqual Battlefield Museum, Heritage Walk at Grape Day Park, Welk Resort Center, Iceoplex iceskating complex, Escondido sports center, wineries, boating, shopping, dining, golf and a charming downtown. Escondido also has a Certified Farmer's Market each Tuesday and some of the best antiquing. There is always something for everyone in Escondido.

Poway Real Estate
Poway is a thriving community with an abundance of activities for visitors to enjoy. Known as the meeting place of the valleys, Poway is nestled in an idyllic valley surrounded by mountains. Visitors can enjoy the historic Heritage Museum and Poway-Midland Railroad, as well as the hiking at the Blue Sky Ecological Reserve and Goodan Ranch. Lake Poway and Old Poway Park are ideal for group activities or a leisurely picnic. Play a round of golf at Maderas Golf Club and enjoy an overnight stay at the Poway Country Inn

Rancho Bernardo Real Estate
Termed a 52-week vacationland, Rancho Bernardo is home to many fine accommodations, golf courses, and the Bernardo Winery, one of the oldest continuously operating wineries in Southern California. People are in awe as they drive Interstate 15 from either direction and come upon the lush valley nestled between rock-studded hills. Rancho Bernardo, a relatively new community in Southern California, was developed as a planned community in the early 60's. Now with a population of 40,000, it is noted for its high quality lodging, dining, boutique shopping, golf courses and one of the best school districts in the state.

Rancho Penasquitos Real Estate

Scripps Ranch Real Estate

San Marcos Real Estate
San Marcos is one of the most dynamic cities in San Diego North. While the multiple dining options at historic Old California Restaurant Row and the nearby Edwards Cinema make it attractive to visitors, San Marcos has become a viable educational and commercial center with one of the newest state universities, California State University, San Marcos. The community also boasts the area's only lakeside resort, Lake San Marcos Resort, that has a relaxed resort climate loved by visitors and residents alike.

Vista Real Estate
In 18 square miles of scenic foothills, just seven miles from the Pacific Ocean, lies the attractive City of Vista. Rising from a height of 160 to 300 ft. above sea level, Vista claims the most ideal weather and temperature climate in the United States, with smog virtually unknown to the area. There are thousands of acres producing citrus fruits, avocados, macadamia nuts, flowers, cactus, and some rare fruits, as well as vegetables. Vista also hosts a variety of attractions of interest to tourists including the Moonlight Amphitheatre, the Avo Playhouse, the Rancho Buena Vista Adobe, The Wave Waterpark and multiple special events including the Antique Gas & Steam Engine Museum's very popular "threshing bees" held the third and fourth weekends of June and October.

Valley Center Real Estate
Valley Center invites you to visit its community, 95 square miles of rustic beauty, and just 45 miles north of San Diego. The annual Valley Center Western Days are held each Memorial Day weekend and Bates Nut Farm, operated by four generations of the Bates family, offers incredible values on nuts and candies. It also offers a wide array of activities from arts and crafts fairs in the summer, a pumpkin patch in the fall, and holiday activities. Children of all ages will enjoy Bell Gardens, a full-scale working farm that offers beautiful picnic grounds, vegetables stands, train rides and more. Those longing for a rural life have found a home in Valley Center, where you can find beautiful orange groves, working horse ranches, vegetable farms, and hiking and riding trails.

Ramona Real Estate
Located at the foot of the Cuyamaca Mountains, Ramona is known as the Valley of the Sun. Ramona offers its visitors a variety of great outdoor activities including hiking, mountain climbing, tennis, swimming, and horseback riding. Nearby Lake Sutherland offers a relaxing scenic option for nature lovers and photographers. Roadside produce stands abound and visitors must visit the Guy Woodward Museum on Main Street. Ramona was known as the Turkey Capitol of the World. Thousands of turkeys were raised and shipped all over the world. Ranches and homes have replaced these farms but the community still enjoys its rural atmosphere and friendliness.

 

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