This week I have had a lot of questions about closing costs? Mainly people ask, “how much are closing costs?” That’s not an easily answered question. Closing costs vary widely due to different fees charged by title companies. The title company will provide you with a closing statement called a HUD-1 form. In Texas, the seller typically chooses the title company used by both the buyer and seller. In other states, like Utah, buyer and seller each have a choice of title companies.
Fees will be between 2-5% of the purchase price and include pro-rated taxes, lender’s fees, credit check fees, notary fees, title insurance, home warranty, etc. Get an estimate from your title company to find out what fees you will be responsible for. Even though you may have asked for concessions from the seller for closing you will still be responsible for any amounts over the negotiated amount.
Here is a quick video from the Houston Association of Realtors® explaining more about closing costs: