What are closing costs in South Carolina?
Closing Costs are the additional expenses that are incurred when purchasing a home. There are numerous other fees that are charged by third parties associated with the transaction who must get paid for their work.
- Legal fees
- Appraiser costs
- Lender fees
- Escrow accounts
The Cain Mortgage Team can further explain closing costs to buyers in Columbia, Lexington, Blythewood, Chapin and Irmo. When purchasing a home, some of the third parties are as follows:
Attorney costs – Legal fees
The Attorney is in charge of making sure the seller has the ability to sell the house, the buyer is buying a house with no judgments or liens, and the buyer is buying the right 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 $1000 and $2000.
The Appraiser 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 numerous factors but the main factor is what other similar houses in the area have sold for in the last six months. The cost for an
Appraisal is typically around $500.
Lenders typically charge one main fee and is usually called a Lender Fee, Underwriting Fee or Application Fee, which is typically between $950 and $1250. Other small fees such as 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 the lower rate.
Other Closing Costs associated with buying a house are the costs that create the 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 $1500 and $3000.
Total closing costs in SC
So, when trying to determine the total amount of Closing Costs needed, a good estimate would be between $4000 and $6000.
Who pays closing costs?
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 prior to putting in an offer on a house so it can be determined who pays the closing costs. Always consult with a Loan Officer to determine how best to structure your offer.