The average closing costs of buying a home in Shawnee KS
Whether you are a first time buyer, or you’ve been an owner many times, if you are new to the real estate market in Shawnee KS, you may be wondering what are the closing costs of the home in Shawnee KS you’ve been considering to buy. Closing costs vary depending upon the states, counties, districts, towns and even subdivisions.
The average range in Kansas for closing costs are $1,800 for every $200,000 home. This state’s closing costs are on the low end of the national average, even lower than its neighboring state, which is an advantage for you – the buyer.
What goes into the closing costs?
Here are some things included in the closing costs of a home for sale in Shawnee.
Application fee. This is what lenders refer to as the “lender’s processing fee”. The average cost is under $300, but there are also some that charge up to $500.
Appraisal fee. Lenders hire an independent appraiser to assess the correct market value of the home, to verify it is worth the price you’ve offered for it.
Commitment fee. This is what lenders charge you to compensate for the lender’s commitment to lend money.
Credit report. This is for your credit report which reflects your credit history. The lender uses the information from the credit report to decide whether your loan will be approved or not, and how much you can borrow.
Document preparation fee. This is the fee charged for the preparation of the legal papers, like the mortgage, the deed of trust, the note or the deed.
Flood certification. This is paid to a third party who determines if the property you are purchasing is in a flood free zone. If it happens to be in a flood zone, you’ll have to buy flood insurance, which is an additional fee.
Home inspection fee. This is another requirement by the lender, to make sure that the structure of your property is safe. If your lender requires a termite inspection, you’ll have to get a separate inspection or ask the professional inspector to do it for an additional cost.
Lender’s title insurance. This is what you’ll pay for the lender’s policy, to protect the property which is a lender’s investment.
Origination fee. This fee is what lenders charge as payment of their time and effort in funding your real estate purchase. You’ll see this in percentage form and is usually at least one percent of the total loan amount.
Property tax. This fee is prorated between you and the seller. You will pay the tax from the day you bought the home to the end of the year.
Real Estate Commission. This is what you’ll be paying your real estate broker as fee for his or her effort in the real estate transaction. This is in percentage form and is dependent on the selling price of the home.
Survey fee. This accounts for a large chunk of the closing cost. You have to pay a licensed professional who’ll determine the land boundaries of your property. In some cases, this is a requirement by the lender. There are also cases when the buyer will want it for assurance and peace of mind.
Transfer tax. This is the fee made to the locality where the property is being transferred from the seller to you.
Title search. This is in payment for the public records of the property you are buying.
Underwriting fee. This is paid to the lender for the cost of the research on whether to approve your loan or not.
One of the benefits of buying homes for sale in Shawnee KS is that the closing costs in this area area much more affordable. To better prepare you for it, request the Loan Estimate from your mortgage officer. A few days before the closing, you will receive an ALTA, the closing cost statement from your lender, which you and your REALTOR® will then review together to make sure you know where your money will go.
You can also negotiate closing costs with the seller. Instead of getting a price reduction, which will amount to a few dollars more in a monthly payment, ask for the seller to pay some of the closing costs for the home.
For more home buying tips and information, visit http://ShawneeRealEstateConnection.com/.
Planning to buy a home in Shawnee KS? Call me, Lea Deo, at 913-233-9547. Allow my extensive experience as a REALTOR® help you find the home of your dreams.
In case you can not view this video here, please click the link below to view What Are the Closing Costs of Buying a Home in Shawnee KS on my YouTube channel: https://www.youtube.com/watch?time_continue=10&v=Zrmr5DfNpUk