CLOSING COST ESCROW
What You Need to Know About Closing Cost Escrow
If you’re curious about your California closing cost, there are many aspects to the closing process that every buyer and seller should know. When it comes to closing cost escrow, these fees are simply a part of the total costs to purchase a home. The fees are paid directly to the title or escrow company that sets up the escrow for your account. In addition to this, your closing cost escrow also covers the cost of all paperwork including the recording of the deed and all exchanges of funds. Most costs that are held in escrow include the real estate transaction fees, any associated loan fees, third-party payments (such as insurance), and the profit for the seller. Using the escrow protects your money and ensures that it goes to the right places at the right time to keep everything running smoothly.
The actual escrow fee varies depending on your state, and California closing cost fees may be higher or lower than other states in the nation. Be prepared to pay a small percentage of your home’s total price as part of your escrow fees. You’ll need to take the price of the home and use it to find out the escrow company’s actual fee. In some cases, it can be as low as one percent or several percentage points depending on your location. Use that percentage to determine the estimated costs of your closing and escrow. You may also have to pay a real estate attorney when closing, which also depends on your specific state requirements. In most cases, the cost to close is split between the buyer and seller or it can be negotiated depending on the deal you make. There’s no specific law or rule that determines who pays these fees, so make sure that you’re on the same page with the buyer or seller, or talk to your real estate agent for more details so you will be prepared on closing day.