What Is Included In The Closing Costs?

If you've ever purchased a home before (or talked to someone who has), you are probably well aware that the price of the home is not the total cost you will be expected to cover. When you buy a house at the Lake of the Ozarks, you will also have to pay for the closing costs associated with the purchase of the home. Closing costs can often seem like an unknown factor for people who are buying property, but the team at Gattermeir Davidson Real Estate is here to explain the process.

What Are Closing Costs?

Buying a house is not a one- or two-person job; real estate transactions require the cooperation of several different professionals. The closing costs cover the fees for the professionals' various services. Typically, these closing costs can range anywhere from 2.5-5% of the home's total sale price. They very greatly from transaction to transaction and there is no way to predict in advance exactly what your closing costs will be; however, your mortgage lender is required to give you a Good Faith Estimate (GFE) that should provide a general estimate for your expected closing costs. Keep in mind that the closing costs are allowed to vary in either direction up to 10%, so the number shown on your GFE may be very different than the actual number on the HUD-1 settlement statement you receive the day before the closing.

What Is Included In The Closing Costs?

As we said, the closing costs cover all the other expenses associated with the process of buying real estate at the Lake of the Ozarks. While the exact fees and services will vary depending on the transaction details, here are a few of the services typically covered in the closing costs:
  • Title Insurance
  • Title Search Fees
  • Credit Check
  • Escrow Deposit
  • Appraisal Fee
  • Homeowner's Insurance
  • Processing Fee
  • Underwriting Fee
  • Property Tax
  • Homeowners Association Fees
There are several other services included in the closing costs, but this list provides a broad overview. Notice that the commissions for the Lake of the Ozarks real estate agents are not included in the closing costs - these are paid separately by the seller.

Can You Get Out Of Paying The Closing Costs?

There are several different ways to lower the amount of closing costs up front, but some of them are not necessarily the most frugal. Here a few common ways that people cut down on the closing costs:
  • Depending on the type of mortgage loan you are getting, you may be able to include some of the closing costs into the total amount of your loan. This lowers the amount that you will be required to pay up front, but it means you will have to pay interest on the remaining closing costs.
  • In some cases, the lender will lower the closing costs in exchange for a higher interest rate on the loan.
  • Sometimes, the buyers can negotiate with the sellers to cover part of the closing costs.
We hope that this overview helps you get a better understanding of the closing costs and helps to ease any concerns you may have! If you have other questions about the closing costs or would like to talk further about the process of buying a house at the Lake of the Ozarks, feel free to give us a call. We would be happy to meet with you!

 Stay connected with Gattermeir Davidson Real Estate, LLC!

2011 REALTOR Salesperson of the Year
Missouri Association of Realtors

Gattermeir Davidson Real Estate, LLC
752 Bagnell Dam Blvd., Suite A
Lake Ozark, MO 65049

Office | 573.365.1555
Fax | 573.365.1766
Location: Lake Ozark, MO 65049, USA

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