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Closing Costs And A Cash Sale: Who Pays? There are some people who are able to pay cash for a home. Typically, these are individuals who are selling an existing property that has gone up in value. Now, all of a sudden, they have a lot of extra money they can spend on a house. If you can pay cash for a home, you have a lot of extra negotiating power. When it is time to complete the sale, who pays?

What Is Included In Closing Costs?

Before deciding who pays closing expenses, it is important to take a look at what is included. Because you do not have to worry about going through a lender, you can avoid many of the fees associated with the process of buying a home. Examples include origination fees, processing fees, credit checks, and mortgage points.

On the other hand, there are several other expenses you might have to cover. For example, you will have to put down some earnest money, and you might have to pay for a property inspection and appraisal. You should also pay for title insurance and a title search. There are some states that require you to work with an attorney, and you may have to pay attorney’s fees as well. Finally, you might also be responsible for notary expenses and certain escrow fees. Keep in mind that these expenses can vary from state to state.

Who Pays For These Costs?

Because there are still several expenses you need to pay, you will need to work with the seller to decide who was responsible for them. In a lot of situations, these costs are the responsibility of the buyer.

At the same time, it is a matter up for debate. If you believe you have a lot of negotiating power, you might be able to convince the seller to pay for these expenses. For example, if the house has been on the market for a long time and the seller does not have any other offers, you might convince the seller to cover your closing expenses. You may want to work with a real estate agent who can help you figure out if you can convince the seller to cover these expenses.

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home Are you starting to tire of paying your monthly rent to someone and never building any equity? Renting forever can be a significant pain, especially as you’re contributing to someone else’s financial well-being. The good news is that there are affordable real estate options out there for those investing in their first home. Below we will share a few excellent reasons why an apartment or condo might be the best choice for a first-time home buyer.

A Manageable Monthly Payment

In most markets across the country, condos and apartments are available at a significantly lower cost than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will, in turn, be lower. If you are single or a young professional trying to start a family, that extra money can be a massive boost to your monthly budget.

Note that while your monthly mortgage payment may be lower, you are still responsible for other maintenance and upkeep fees. The most common is known as a homeowners’ association fee, to which all condo owners in the same development contribute. These funds are used to upkeep the building or property as well as things like landscaping, a pool or gym, and other amenities.

A Smaller Down Payment

In the same vein, buying a less-expensive home also means that you can put a smaller down payment on it when you close the sale. In many cases you are required to place a certain percentage – typically 20 percent – down to avoid having to purchase private mortgage insurance. Having to commit less in your down payment leaves more money in the bank for other purposes.

An Excellent Future Investment Property

Don’t forget that when you are ready to upgrade and move into a larger house, you can keep a condo as a rental or investment property. Once your mortgage is paid off, you are only responsible for the monthly maintenance fees and taxes. So if you can rent the condo out to a tenant, you will have an excellent source of cash flow that can help to pay for your new home or fund other activities.

The above are just a few of the many reasons why a condo can be a great starter home for first-time buyers. To learn more about your mortgage options, contact us today. Our team is happy to help.

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