Buying property is a dream for a lot of people, but it is not a cheap or easy process. If you are buying a home or other piece of real estate in South Carolina, you will incur a lot of different costs and fees.
When you close on your home, you will need to bring more than just your down payment. Many buyers underestimate just how much money they will need to bring, and they may not realize all the different costs involved. One thing you will need to make sure you have saved up for is closing costs.
Closing costs for the buyer are the fees and expenses paid at the end of a real estate transaction, typically on top of the home’s purchase price. These costs cover various services required to finalize the sale and transfer ownership.
Closing costs vary from state to state, but are typically 3% to 6% of the loan amount. This can vary depending on your location and the type of loan. Closing costs do not include your down payment, but you may be able to negotiate them, depending on whether it’s a buyer’s or seller’s market.
In South Carolina, the average closing costs (including transfer taxes) are $3,447. This may seem like a lot of money, but it is one of the cheaper states. In Delaware, the average closing costs are $17,859, and in Washington, D.C., they are a whopping $29,888. The three cheapest states are Missouri, Indiana, and Nebraska.
What Do Closing Costs Include?
Common buyer closing costs include the following:
- Loan origination fee. This is charged by the lender for processing the mortgage (typically 0.5% to 1% of the loan amount).
- Appraisal fee. This covers the cost of a professional appraisal to determine the home’s value (usually $300 to $500).
- Title search and title insurance. This ensures the seller has legal ownership and protects against future title disputes.
- Attorney fees. In South Carolina, a licensed attorney must be involved in real estate closings, as the state considers real estate closings to be the practice of law.
- Recording fees. These are paid to the local government to record the property deed.
- Escrow fees. These are charged by the escrow company for handling funds and documents.
- Credit report fee. This is charged by the lender to check your creditworthiness (typically under $50).
- Underwriting and processing fees. These are fees from the lender for reviewing and approving the loan.
- Prepaid costs. Property taxes, homeowner’s insurance, and mortgage interest may need to be paid ahead of time.
Contact Us Today
Closing a home can be exciting, but there’s a lot involved. There is a process that needs to be closely followed, as well as closing costs for the buyer.
The Greenville real estate closing attorneys at Blackacre Law, LLC, can make the process seamless. For your closing to occur without any bumps in the road, a lot of work must be done behind the scenes. Our experienced attorneys know how and where to focus their efforts. To schedule a consultation with our office today, contact us via (864) 775-5400 or online here.