Buying a short sale property can be the right financial move for you. However, before you commit to that sale, make sure you know how much you’ll pay for short sale property closing costs in Wheaton.
What are closing costs?
These are fees that the lender charges upon the close of a sale. The amount can set you back as much as a few thousand dollars. This is why it’s important that you have more than enough in your budget to cover your mortgage and your closing costs. That way, you won’t run out of funds in the middle of a sale.
Types of closing costs
- Origination fees are charged to develop a home loan and often set at a certain percentage of your mortgage amount.
- Discount points are fees paid upfront. These are in the form of mortgage interest. The higher these discount points are, the lower your interest rate gets.
- Appraisal fees are paid to appraisal companies that assess the value of your property, which helps you determine the right pricing for the home.
- Tax service fees are paid to a company that checks out if the property’s real estate taxes have been paid and are all in order.
- Document preparation fees are charged by the lender to a borrower, to cover the costs of preparing and producing the necessary documents that will need to be signed for the sale to push through.
- Attorney fees are of course paid to the lawyer for witnessing the loan transaction as well as for guiding the buyer or seller throughout the entire process.
In what state are you?
Where you live can determine these costs to an extent. For short sale property closing costs in Wheaton, the figure is probably close to about $2,000 more or less. That figure is based on Bankrate’s computation for closing costs in Illinois.
