Buying a house in Harford County can be an exciting and nerve-wracking experience. On one hand, you’re excited about finding the perfect home in a city that you love. But on the other hand, there are so many things to think about and consider – one of which is closing costs.
Closing costs are the fees and expenses that are paid at the closing of a real estate transaction. These fees are in addition to the purchase price of the home and can vary depending on the location and the type of home you’re buying. In this blog, we’ll take a look at five things you need to know about closing costs when buying your new home in Harford County.
1. What are closing costs?
Closing costs are the fees and expenses that are paid at the closing of a real estate transaction. These fees can include things like appraisal fees, title search fees, recording fees, and attorney fees. They are typically paid by the buyer but can sometimes be split between the buyer and the seller. Make sure you know exactly what you are responsible for when making an offer. When you’re buying a home, you’ve probably already budgeted for your down payment. But that’s only part of your financial responsibility. Closing costs can’t roll into your mortgage, so you’ll need to be prepared to pay them when you take possession of the house.
When you’re buying a house in Harford County, Maryland, and surrounding areas the down payment isn’t the only cost that will be coming out of your pocket. Buyers are usually responsible for a large portion of the closing costs, and you’ll want to do your homework ahead of time to know just how much you might be paying.
Ideally, you’ll work with an experienced, local real estate agent that can help you set realistic expectations on the total cost of buying a home.
2. How much are closing costs in Harford County?
Closing costs in Harford County can vary depending on the price of the home, the location, and the type of loan you’re using to finance the purchase. The include title search, taxes, escrow fees, discount points, title insurance, and other government fees. A good rule of thumb is that closing costs will range between 2% and 5% of the home’s final sale price.
3. What fees are included in closing costs?
Common Closing Costs for Harford County, Maryland and surrounding area Home Buyers
Though closing costs for Maryland homes can vary, there are a few typical fees that buyers will be on the hook for:
Closing costs can include a wide variety of fees and expenses. Some of the most common fees included in standard closing costs are:
– Appraisal fees: This fee is paid to the appraiser who assesses the value of the home.
– Title search fees: This fee is paid to the title company, which searches the public records to ensure that the seller has a clear title to the property.
– Recording fees: This fee is paid to the county recorder’s office to record the deed and other documents related to the sale.
– Attorney fees: This fee is paid to the attorney who represents the buyer or seller in the transaction.
– Loan origination fees: This fee is paid to the lender who processes the loan and prepares the necessary paperwork. Such costs include credit report fee, prepaid interest, postage/courier service etc.
Other Costs to Consider
The down payment and closing costs for your new home is usually a large sum of money, but these costs can pale in comparison to the ongoing costs of homeownership. Would-be buyers should consider the overall financial picture of owning a home before pulling the trigger.
Once you own a home, you’ll have to pay annual property taxes, which averages 1.085% of the home’s assessed value in Maryland. This is slightly below the national average tax rate of 1.211%, but the actual rates can vary by county.
In addition, you’ll need to maintain homeowner’s insurance, at least for the duration of your mortgage. Some lenders will wrap this cost in your monthly payment to ensure you keep up with it.
Utilities and maintenance costs will also eke into your finances. When something breaks, the cost to fix it falls on you.
It’s imperative that you are in a financially stable position to purchase a home and cover all related costs.
4. Can closing costs be negotiated?
In some cases, closing costs can be negotiated between the buyer and the seller. For example, the seller may be willing to pay some of the closing costs in order to close the sale faster. Additionally, some lenders may be willing to waive certain fees or offer discounts on closing costs in order to attract new customers.
5. How can you prepare for closing costs?
One of the best ways to prepare for closing costs is to budget for them ahead of time. Talk to your lender and your real estate agent to get an estimate of how much closing costs will be for your specific transaction. Additionally, you may want to consider negotiating with the seller or the lender to see if you can reduce some of the fees at the closing table.
Closing costs are an important consideration when buying a new house in Harford County. By understanding what they are, how much they cost, and what fees are included, you can better prepare for this expense and ensure that you’re able to close on your dream home without any surprises. If you have questions about this or any other part of the home-buying process, don’t hesitate to reach out to our team at 443-616-5486!