Monday, August 5, 2013

Sales, Prices and Interest Rates Are Up, and So Are Closing Costs

A previous post defined closing costs and explained what went into them. Now comes a survey from  showing a significant overall increase in total closing costs from a year ago. The main reasons for the increase seems to be higher lender origination fees as well as fees for outside services, such as appraisals.

The survey, which shows a state-by-state average, didn't include costs such as title insurance and search, escrow fees, property taxes and other government fees, since these are variable by state. These are fairly large charges.

What this means is that borrowers will have to have more cash to close a loan. And while it's tempting to think, "Meh, so what, nothing I can do," don't give up too quickly. Now more than ever, it pays a buyer to shop around for a loan and to look at several offers with Good Face Estimates attached.