What are the closing costs when paying cash for a house?
Purchasing a home with cash requires a large investment from the buyer. The home itself will require a large cash payment to the seller. There are also closing costs to consider. Some closing costs are associated with a mortgage and are not necessary when paying cash.
Other closing costs are necessary whenever a house is purchased. Closing costs exist to protect both the buyer and the seller and must be paid at the time the title transfers to the buyer.
Home buyers should be aware of any potential liens, unpaid mortgages or ownership problems with the house they want to purchase.
The company performing the title search will research all public records to determine who currently owns the title to the property and review any mortgage activity associated with the property.
The company will provide documentation regarding the home's title to the purchaser at closing.
This documentation will give the purchaser proof that the seller is the current owner and has the right to sell the property. The cost of a title search varies by region.
Title insurance protects the new homebuyer in the case of an error made during the title search. If any issues regarding the title arise in the future, the homebuyer will be protected. The purchaser can shop around for the best rates by calling different title companies.
The purchaser may be able to negotiate a discount if the previous title search was not in the past several years and no significant claims have been made against the property since. The cost of title insurance varies by region and is partially based on the selling price of the home.
Local county government offices keep track of all the homeowners in their jurisdiction.
Whenever real estate changes hands, the transaction is recorded in the county office and the records are updated.
When the homebuyer purchases a house, the papers to record the transaction will need to drawn up and filed with the county office.
These records will be used to communicate property tax and roadwork information with the new homeowner. Recording fees are typically less than a hundred dollars.