What is closing if you are a buyer? If you’re a typical buyer, you looked at houses online and in-person with your realtor. You found the house for you and your family in the perfect neighborhood and at your price. You made an offer and the seller accepted. Now it is time for the closing.
According to Money Under 30, “A closing agent, a neutral third party, such as a title company or a real estate attorney, handles the closing. At a closing, certain things take place: Transferring the home’s title (and the keys) from the seller to the buyer, and the proceeds of the sale distributed to the seller.” If the buyers finance the home, the buyers sign the mortgage note. Finally, the buyer and/or seller pay other fees such as real estate commissions, title insurance, and pro-rated property taxes.
If you are the buyer at closing, you need to pull out your checkbook.
As you can see, you could need more than 1.5 times your down payment to close on a house successfully.
|Down payment||10% of $200,000||$20,000|
|Closing costs||2.5% of $180,000||$4,500|
|Prepaid expenses||2% of $180,000||$3,600|
|Cash reserves||$1,200 mortgage payment x 2||$2,400|
|Total cash required||$31,000|
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566