How much are closing costs in North Carolina?

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How to Estimate The North Carolina Closing Costs?

With so many different types of closing costs in North Carolina, it is best to talk with a local Loan Officer to discuss further. However, when trying to estimate the closing costs, you need to understand what fees are involved, who pays which closing costs and know the costs can vary based on the loan amount. It is important to know, when negotiating the contract, the buyer can request that the Seller pay part or all of the closing costs. To find out if that is the right thing for you, it’s important to understand the various closing costs in the state of North Carolina.

Here is a quick overview for each of the common closing costs in North Carolina:

 

NC Title Search Fee

The title search allows the current owner to sell their home and ensures that the property is rightfully theirs and confirms there are no liens or judgments. The fee varies, but Realtor.com puts the figure at $250 to $500.

NC Title Insurance

Title Insurance protects the lenders and buyers against any discrepancies in the prior owner’s title, which could be detected after the closing phase. The title insurance fee is typically $2.00 per $1000 up to $100,000 and $1.50 per $1000 up for $100,000 -$500,000.

NC Home inspection

Home inspections are carried out to identify any issues with the property and is not a service that should be disregarded. The home could have major issues like structural, plumbing, electrical and roofing that need to be remedied and can cost tens of thousands of dollars. It is a great way to determine the condition of the home before closing. A North Carolina home inspection usually costs between $300 and $500.

NC Appraiser Fee

The Appraiser, acting on behalf of the lender, is responsible for determining a fair and accurate price of the house, as well as the condition of the property. The Appraiser determines value based on multiple factors, but the main factor is what other similar houses in the area have sold for in the last six months. The cost of an Appraisal in North Carolina is typically between $275 – $450.

NC Escrow accounts

Escrow Accounts are separate accounts the Lender creates to pay your taxes and insurance. This cost is dependent on the time of the year you purchase and the amount of the annual property tax and hazard insurance. The amount of money needed for your escrow account can vary between $1000 and $3000. The higher the price of the home, the higher the cost will be to create your escrow account.

NC Survey Fee

A survey is used to determine a home’s legal limits. The experts at HomeAdvisor put the figure at around $300-$500. These surveys effectively give you a legal description of the exact boundaries of where your property lines begin and end. A survey is not always needed and the date of the last survey will determine whether or not one is needed.

NC Credit Report Fee

When applying for a mortgage, buyers undergo credit reviews to make sure they are creditworthy. Credit reports normally cost from $20 to $50.

NC Early Payoff Fee

These costs usually include prepaid interest and other Lender fees. However, this fee is paid by the seller when obtaining the mortgage payoff.

NC Attorney Costs – Legal Fee

The Attorney is in charge of making sure the seller has the ability to sell the house, so the buyer is buying a house with no judgments or liens, and the buyer is buying the correct property with the land associated with it. The Attorney has fees for the Title Search, to conduct the closing, wiring of the funds and other fees associated with the closing. The Attorney fees can vary based on if it is a purchase or refinance and the purchase price/loan amount. A typical range of total fees for the Attorney is between $500 and $700.

Lender Fee NC

Lenders typically charge one main fee and are usually called a Lender Fee, Underwriting Fee or Application Fee, which is typically between $950 and $1250. Other small fees such as a credit report, tax service fee, and flood certification fees are charged and they usually total between $100 and $200. Sometimes the Lender will charge Origination Fees which is an additional cost to the buyer to use this Lender. There are numerous Lenders who don’t charge Origination Fees and we would recommend looking for a Lender who doesn’t charge this additional fee. A Discount Fee is a fee that is charged to buy down the interest rate and this is also an optional fee, but does benefit the buyer with a lower rate.

NC Transfer Taxes

The rates vary from one county to another, but North Carolina home sellers can generally expect to pay $1.00 per $500 of home value in taxes on sales. This fee is typically paid for by the seller.

Recording Fee in NC

Recording fees include the fee for recording a deed at a local courthouse. These fees will vary from one county to another across North Carolina.

NC Prepayment Penalty

Prepayment Penalties are fees that some states charge after you obtain a mortgage and for paying it off before the term has expired. In North Carolina, there is no Prepayment Penalty for paying off a mortgage early. However, there can be some fees associated with paying off a mortgage within the first six months of obtaining a mortgage.

NC Outstanding Amount

Any outstanding amounts for HOA fees or homeowner’s insurance are prorated to the date of closing. Therefore, you will be required to pay the outstanding balances before the property can be transferred to the buyer.

North Carolina Seller Closing Costs

Closing costs vary for both the seller and the buyer. North Carolina closing costs for home sellers cover the cost of transferring homeownership, clearing any outstanding amounts and authenticating the title.

Total closing costs in North Carolina

So, when trying to determine the total amount of Closing Costs needed, a good estimate would be between $2000 and $5000.

Who pays closing costs in North Carolina?

Closing Costs can be paid by three separate parties in the transaction – the buyer, the seller and the Lender, or a combination of the three. It is very important to have an estimate of the total closing costs before putting in an offer on a house so it can be determined who pays the closing costs. Always consult with a local Loan Officer to determine how best to structure your offer.

 

Conclusion

Closing costs are unavoidable when selling or buying a home. The exact figure will differ depending on the price of the home and type of transaction. Your family can save a large sum of money by researching how to lower your closing costs. To learn more information on closing costs in North Carolina and to get the best rates, please do not hesitate to contact us.