When you’re ready to purchase a home, you’ll probably spend plenty of time researching different neighborhoods and checking out properties. You may even have a mortgage broker or real estate agent assisting you through the process. However, don’t forget about your closing costs too!
Most homebuyers end up paying more than they expect regarding their closing costs. Closing costs can vary from state to state, but in general they tend to be slightly higher in pricier areas. There are ways to keep your closing costs as low as possible without sacrificing any of the value offered by your new house or condo. Keep reading to learn more about what closing costs you should prepare for and how you can lower them.
What are Closing Costs in Georgia?
Closing costs are the fees involved in purchasing a home. It’s important to remember that these fees aren’t the same as homeowner’s insurance or down payment requirements since you’ll be paying for them when you purchase your home.
Closing costs include:
Appraisal Fee: Have a professional appraise your property and provide an unbiased estimate of its worth to ensure that you pay a fair price.
Origination Fee: This fee covers the cost of processing your loan application. The lender usually charges it, but sometimes it’s paid by the buyer instead.
Processing Fee: This fee will cover the cost of processing your loan application and may include a certain amount for appraisals and other fees.
Who are Closing Costs in Georgia for?
You need to know the risks involved in making a home purchase. For example, suppose you have no money saved to cover a down payment or adjustable rate mortgage that requires monthly payment. In that case, these fees can quickly offset any savings you might have realized during your research process. Below is a closer look at some of the important factors you need to consider when closing costs are concerned.
Those with low incomes: Closings costs may be higher than the average homeowner because they are typically incurred by people buying properties that carry higher prices than their annual incomes usually allow.
Homebuyers with little to no money saved up: Most of the time, you’ll need to have at least a 20 percent down payment to qualify for a conventional loan. In other words, if you’re looking to buy a $200,000 home, you’ll need at least $40,000 saved up just for your down payment. Your closing costs will be included in the remaining balance of your loan.
Examples of Closing Costs in Georgia
Closing costs are the costs you incur when purchasing a home. Some of the most common closing cost transactions include:
- Mortgage Loan Application Fees
While mortgage loan application fees can vary from lender to lender, in Georgia, they’re generally around $500-$1,500.
- Title Insurances
Title insurance puts your mind at ease by ensuring that your new title-free home is free of any liens or judgments. These title insurance policies in Georgia range from $233 to $333.
- Title Search Fee | A title search can be performed by a real estate agent or you can run the search yourself. You can expect a $100-$150 title search fee.
- Mortgage Loan Processing Fees
In Georgia you’ll probably have to pay for an appraisal, a credit report, and a mortgage loan processing fee of $250-$500.
- Agent Commissions & Closing Costs
Sometimes, the real estate agent may require their commission to be deducted from your closing costs. In Georgia, you’ll likely need to pay a commission between 1.5% – 5% of the purchase price, as well as any additional fees that apply, such as conveyance or transfer taxes and transfer taxes paid by the seller.
Where can you find more information about Closing Costs in Georgia?
Now that you have a better understanding of what closing costs are and how they impact, you’re ready to find out more. Several online resources can provide you with additional details regarding closing costs in Georgia.