Thursday, June 10, 2021

Who Pays Lexington MA Closing Costs?

You've found your dream home in Lexington MA, estimated your mortgage, and now it's time to go to the closing table. There is one more set of costs to consider before the deal is said and done, but as many local buyers wonder this same question, I'm here to answer— Who pays the closing costs?

The amount you owe in closing costs can easily be figured based on the mortgage loan amount of the purchase price, but below are a few more important points to note:

Buyers typically have more expenses

The majority of the Lexington MA buyer's closing costs stem from the loan. Costs including the appraisal fee, origination fee, credit report fee, recording fee, notary fee, title insurance, prepaid insurance, prepaid interest and the like will all come due at the closing table. To avoid any surprises, ask your lender to go over each expense and how it may affect your loan.

Sellers typically pay more

While buyers in Lexington MA may have more expenses outlined in their final closing cost statement, sellers tend to pay more. Why? The seller is often responsible for paying the real estate commission which is based on a percentage of the total sale price of the home.

You can negotiate costs

You can always negotiate with closing costs. For instance, instead of asking for a reduction in the purchase price of the home (which may have very little affect in your overall monthly payment), you can ask for a credit toward closing costs which can allow you to save some of the out-of-pocket expense when the time comes to write the check. 

Theresa D'Antuono