What Will The Closing Fees Be When You Sell Your Home?

I don’t enjoy it, but there have been a number of times I didn’t see a closing statement until I was seated at the closing table. That is just not good, because a person needs some time to digest the important information regarding a real estate sale. Whenever and however I receive the form, by fax, email or in person, I position myself to be rid of distractions in order to review it thoroughly. If you’re looking over your closing statement I applaud you, and encourage you to continue because it’s an activity that I take it very seriously myself. Your closing statement is also called a HUD-1 form because that’s the government form used to prepare it and required by law when you sell your house.

In fact, to take this a step further, I’m suggesting you close the door, your electronics focus sharply on the HUD-1 statement whenever and however it arrives. Remember, this form will determine how much you pay and how much you receive closing when you sell your house. Don’t be casual about it, read it thoroughly and be sure you understand it. If not, call the person who prepared it and ask questions, as well as asking your real estate agent.

In case you didn’t get a copy of your closing statement when you’re sitting down at closing to sell your house, get some help. I mean go in another room if necessary, sit down, read the form carefully and ask questions. The numbers on this form control where are the funds are disbursed at closing, which directly affects how much money comes out of or goes into your pocket. As soon as you thoroughly understand it, only then is it time to return to the closing table. Don’t hesitate to take this time. I assure you that you are completely within your rights, and you were legally supposed to have the form 24 to 48 hours prior to your scheduled closing.

After review, you will understand the phrase “closing costs.” Actually there are two different types of closing costs, “non-recurring closing costs” and “pre-paid items.” Those two are the items you pay only once, that’s non-recurring, and the things you or your buyer will be paying routinely as the owner when you sell your house.

Now you know that closing costs are the expenses of closing a real estate transaction. It can be surprising to see that the list of costs is so long when you read over the HUD-1. You can review a blank copy of the HUD-1 form online to familiarize yourself with it in preparation for what you’ll be seeing prior to closing day when you sell your house.