MAGIC MINUTE – What’s Included In Closing Costs?
What are these ever-ambiguous closing costs and what do they encompass?
Here is a brief and straightforward example of closing costs in Los Angeles.
- If you are getting a loan for a property, they will charge you a percentage to borrow that money. So, whatever you owe is part of the closing costs.
- Inspections that you have to do for the house. Depending on which you choose to do, etc. These costs factor into the total.
- Escrow costs- As a buyer, you would pay your half, and as a seller, you would do the same. A really rough estimate can be anywhere from 1.5%-3.5% of the potential purchase price.
Combine all of the above, and that is what makes up your closing costs.
Hope that was helpful and check back in for more Magic Minutes headed your way!
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