Bozeman Montana Real Estate "SPECIAL PLACES" REALTY

$$$FreeHomeEvaluations.com
(MLS) MULTIPLE LISTINGS!
Relocating? START HERE
Featured Properties
Listings! Homes/Land
Open Houses
$$$Get FREE CMA Here!
FREE Reports
Choice Home Sites!
SELLING A Home
BUYING A Home?
Businesses/Attractions
Schools Info
Lenders Center
Real Estate ANSWERS!
MT Fish Wildlife Parks
SALUTE To America
TOPO Maps
TOXIC Molds/Your Home?
Quotes: All Insurance
The Educated Home Buyer
USGS Earthquake Activity
NEWS/Stock Mkts
GOLD/Silver Mkts
Pre-Qualify Now!
Real Estate Inquiry?
Special Places Realty Home
BOZEMAN "ALL AMERICAN CITY"
  * * Gary Burrell CRS * * The Right Realtor * * Lowest Commission Rates * * The Right Answers * *

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.

Preferred Partners
Check out the best in local home-related services.
Automated E-mail Listings Service
Sign up to automatically receive new listings today!
Home Advice
Get the answers on home selling and buying.
Real Estate News
Find out what's happening in real estate.

 
Articles
&
Links
   PriceYourHome w/ FreeHomeEvaluations.com
The "SELLING" Edge!
"Home Selling" Concerns!
"LIST TO SELL"
"Real Estate Advisery"
HOME HEALTH/SAFETY
Are Home Molds Toxic?
HEALTHY INDOOR AIR
Differences In Loans?
Discovering Montana
Leveraging Your Money
"HowStuffWorks"
NASA's Night EarthLights!
FEDERAL GOV'T INFO
SEARCH MLS LISTINGS
   FISH'N MONTANA
Visit "A Special Place"
FREE REAL ESTATE REPORTS
Epicurean Recipes+
"Tour Our Solar System"
"Sun/Earth Activity"
Length of Your Mortgage
"The Educated Home Buyer"
Saving Money To Buy
Closing Costs
How Mortgage Loans Work
Adjustable-Rate Mortgages
How Much Home To Buy?
Buyer's Financing Concerns?
USA Currency Values
 
 
Gary Burrell CRS Realtor
Phone
(406) 585-7778
Fax
(406) 585-9880
Home
(406) 587-0787
Mobile
(406) 539-0406

E-Mail Me


Special Places Realty
1704 West Babcock St.
Bozeman, MT 59715
Powered By HOMES.COM

Copyright 2000-2003 Homes.com, Inc. All Rights Reserved.
Click Here for Full Terms and Conditions

HOMES.COM is one of the largest Internet real estate sites with hundreds of thousands of homes for sale and apartment rentals with photos, descriptions, and relocation services.
The advertisers and publishers are not responsible or liable for misinformation, misprints, or typographical errors. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental.



Member Login