bharatbhasha.com
Free Articles  >>  Real Estate >> 

Understanding Home Closing Costs in Southern California





Real estate closings involve multiple parties performing several tasks to ensure legal transfer of the property, plus a solid loan contract with your lender.
Looking to buy a house in Northeast Los Angeles â NELA, as it is known â but unclear of the process and amount of money needed? A licensed Realtor can help you figure it out. But for ballpark purposes, it might help to do some preliminary study on your own.
NELA is, after all, one of the hottest markets in all of Los Angeles. Not just the obvious neighborhoods like Glendale and Pasadena, but in smaller, lesser-known neighborhoods. Homes for sale in Garvanza are being bought fast. Real estate in Hermon is always in demand.
You might be in love with the schools in Mt. Washington, the housing inventory in Highland Park or the neighborhoods of Eagle Rock, but you have to work through some of these details before you can call any of those places home.
Much is made about closing costs in real estate transactions, and yet these vary for several reasons. The single largest expense, the real estate commission, is covered by the seller (who pays the commission in a split between the buyerâs and the sellerâs agents).
Fees the buyer will need to pay at the closing come with some variation; the following are the largest of such costs at closing:
Homeowner association fees â If the property is a condominium the seller might be in arrears with the homeowners association, in which case you will find this out before entering the sales contract. In distressed circumstances (foreclosures, near-foreclosures and short sales), these fees might amount to thousands of dollars.
Private Mortgage Insurance (PMI) â If your down payment is less than 20% of the price of the property, you will be required to insure the mortgage at between 0.3% and 1.15% of the loan amount.
Origination fee to the lender â Even while you fix your dreams on a Victorian in Glassell Park, a two-unit duplex in Garvanza or fixer-upper in Hermon, you have to go through a large amount of paperwork with a would-be lender to prove your creditworthiness. And yes, they do charge fees at closing for all that fun.
Points â These enable you to change the terms of the loan to your favor if you pay one or more percentage points toward the mortgage amount. If you have the cash and plan to own the property for a decade or longer, paying a point or two upfront can save you much more over time.
Prorated property tax â As the LA tax year begins on July 1, you will need to cover whatever remains in the year in advance from the day of the closing.
Insurance premiums â Protecting the property (as required by all lenders) from damages and liability is required at closing also.
Escrow fees â Third parties performing escrow services need to be compensated for that work. Note that fee structures are not fixed or regulated by the state of California, but are generally set according to the size of the transaction.
Technically speaking there are multiple fees that will be part of the buyerâs closing costs but which the seller automatically pays for in a reimbursement. These include the city transfer tax, documentary transfer tax to title and the owners title policy. Multiple other fees under $500 (average) costs include the lender appraisal fee, credit report fee, prorated HOA fees, courier services related to the transaction, notary services, archiving fees, recording trust deed (to title), and loan tie-in fees.
Note that the process of looking at houses and negotiating a price, and perhaps that of qualifying for a loan, are typically more time consuming than the closing itself. An experienced realtor will be able to advise you on all these details, invariably to the point where you are told how much money to bring to the closing and in what form.
About Author Samantha Turkle :

Homes for sale in Garvanza are being bought fast. Real estate in Hermon is always in demand.


Article Source: http://www.bharatbhasha.com
Article Url: http://www.bharatbhasha.com/real-estate.php/492503


Article Added on Friday, August 4, 2017
LD
Other Articles by Samantha Turkle

Craftsman Homes and Pasadena CA Real Estate
Real estate in Pasadena CA is perpetually in demand by homebuyers. Why? It is because Pasadena is gorgeous with many different kinds of neighborhoods with different vibes and character. Pasadena is widely known for it’s variety of older, classic homes that are always on the market, but it is most famous for its “Craftsman” style homes. In Pasadena and, indeed, throughout Northeast Los Angeles, homebuyers moving into the area are anxious to purchase these phenomenal character homes as...

Understanding Home Values is Critical if Buying or Selling a Home
If you’re buying a home or selling a home, what is the best way to obtain an accurate value of your home? Fortunately, there’s a simple answer. Who would have believed 20 years ago that the rising values of homes in Highland Park and Eagle Rock - as well as real estate in Mt. Washington and in Glassell Park - would be the talk of the town? If you own a home in one of these regions - or are looking to buy a home - odds are that home values are on your mind. Regardless of whether...

Why Buying a Home in Glendale CA is a Good Idea
Glendale is the third largest city in Los Angeles County. This suburb of the Greater Los Angeles Area is the epicenter of established business, trendy shopping, cultural and artistic attractions and plenty of serene nature. These conditions are a large part of why homes in Glendale CA are selling like hotcakes and why Glendale real estate is approaching the market performance of areas like Silver Lake and Eagle Rock. Several large companies have offices in Glendale including Walt Disney, The...

Bungalow Homes and Northeast LA Real Estate
Real estate is booming in communities of Northeast Los Angeles, affectionately known as “NELA”. Highland Park homes - as well as homes in Pasadena, Glendale, Eagle Rock and Altadena - are typified by classic, vintage bungalow homes. Even when examining Mt. Washington real estate, it isn’t unusual to see a turn-of-the-century bungalow perched next to a huge mid-century modern home or even a mansion! The availability of these character homes on the market is part of what attracts...

Classic Victorian Homesand Northeast Los Angeles Real Estate
The ever-booming real estate market in Northeast Los Angeles has renewed interest and focus on the many different types of classic Victorian homes in various NELA communities. As older neighborhoods such as Angileno Heights, Montecito Heights and Lincoln Heights experience gentrification, owners of these homes are selling to homebuyers who desire to restore the Victorians to their original beauty. Victorian-style homes in Highland Park and Eagle Rock have also been selling fast as have...

Why South Pasadena is a Great Place to Buy a Home
The City of South Pasadena is a hidden gem to most, but homebuyers looking for a unique place to call home have made the search for South Pasadena homes for sale a bit like the Gold Rush. To say that this special city is idyllic is a bit of an understatement. Real estate in South Pasadena is booming for a variety of reasons. It just isn’t like any place else. Residing in the West San Gabriel Valley, the enchanting streets of South Pasadena aren’t only lined with gorgeous homes. They are...

Why Altadena CA is a Great Place to Buy a Home
Altadena is a charming city located north of Pasadena, CA and south below the hills of the picturesque San Gabriel Mountains. The nature-down-to-earth vibe of the city has attracted a creative, ambitious crowd that continues to positively affect the growth and development of Altadena. Make no mistake, homes in Altadena are in demand and the Altadena real estate market is red hot. According to AreaVibes.com - Altadena has a livability score of 76, extremely livable. This is higher than the...

The Benefit of an Army of Agents Selling Your Home
There’s an art to selling real estate, but the science of numbers comes into play for any great real estate agent. It’s no secret that the communities that comprise Northeast Los Angeles - Eagle Rock, Highland Park, Mt. Washington and Garvanza, to name a few – represent a hot real estate market. Homes for sale in Glassell Park can draw several dozens of prospective buyers to an open house. Homes in Pasadena almost always sell quickly and with multiple offers. How does that work...

The Rules of Attending Open Houses in Northeast LA
Shopping for a home is fun for many people. And while signs for open houses suggest come-one-come-all, you should be both polite and strategic. The real estate sales technique of open houses has taken a hit in recent years. With online listings - complete with photos and videos - much of the preliminary shopping individuals do is from their personal computer. But one can get much more out of the experience of actually being in the home, getting a sense of the quality of materials, the...

Highland Park CA Homes and Real Estate A Look at the Numbers
In Los Angeles real estate circles, everyone is talking about Highland Park. Like other Northeast LA neighborhoods like Silver Lake, Eagle Rock and Mt. Washington, Highland Park is in a state of gentrification as new stores and restaurants are popping up on York Blvd. and homes are being purchased and restored. As a result, homes in Highland Park are in demand and prices have steadily risen. But gentrification isn’t the only reason. Highland Park is a wonderful area to call...

Click here to see More Articles by Samantha Turkle
Publishers / Webmasters
Article ID: 492503
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


105 Users Online!!
Related Articles:
Latest Articles:
 
Real Estate >> Top 50 Articles on Real Estate
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Unlimited Domain Hosting Provided By AwareIndia







Company IDS