Closing Costs Explained

The field of real estate can be difficult to navigate with so many technical details that the average person doesn’t have time to deal with. That’s why your real estate agent is a valuable asset. Closing costs in particular are an important term to keep in mind when on the market for homes for sale in Napa CA.

Closing costs are fees paid at the closing of a real estate transaction or “escrow.” Escrow is the time when the home’s title is transferred from seller to buyer. The buyer usually pays most closing costs as these fees are related to mortgage financing and escrow services. It’s important to remember closing costs when looking for homes for sale in Napa CA as they can be 3-5% of the home’s purchase price. Escrow companies will provide settlement statements for buyers and sellers to map out dues to the proper parties.

At closing, some seller obligations include paying the city and county transfer taxes, paying commission to a real estate agent for coordinating sale and transfer, and paying various seller charges like Natural Hazard Disclosure report, home warranty, HOA transfer fees, etc. Need more details? Contact your local real estate agent.

Buyers may incur more closing costs such as loan related application fees, credit report fee, underwriting fee, mortgage insurance down payment, and lender’s broker fee. Other fees include escrow company fee, title insurance fees, inspection costs billed to escrow, and prepaid fees to be reimbursed to seller like HOA assessments. Wondering what fees you’ll need to pay when searching for homes for sale in Napa CA? Our real estate agent experts have answers.

Closing costs can vary drastically depending on the home value and negotiations. Buyers must anticipate these costs when on the market for homes for sale in Napa CA but can also “shop” around and compare rates and fees by lenders. Ask our real estate agent professionals about homes for sale in Napa CA and see how they can help you buy or sell property.

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