Closing Costs
With every home loan or mortgage there are costs involved to close the loan. These costs can be anything from the attorney fees, title search fees, loan origination fees, tax service fees, document preparation fees, prepaid taxes, prepaid insurance and the list goes on. All fees that are required to close the loan will be disclosed on the good faith estimate provided to you by your loan officer. It is important for all buyers to know that when preparing an offer to purchase real estate these closing costs are negotiable as to who will actually pay them. In Georgia, the purchase and sale agreement as provided by the Georgia Association of Realtors has a section in which the contribution to closing costs by the seller is to be filled in. A buyer actually negotiates the amount of seller paid closing costs in the offer and this seller contribution becomes binding with the contract.

Having a close estimate of how much money will be required to close the loan is valuable information when negotiating your purchase. One thing to remember is that many of the investors limit the amount of closing cost that may be paid by the seller. This is generally done as a percentage of the sale price and is usually three (3) percent unless you are purchasing investment property when the percentage is usualy limited to two (2) percent. We would not want to see you negotiate for the seller to agree to pay say $5,000.00 in closing costs and the investor only allow $4,500.00. This would cost you $500.00 you had not expected to pay while increasing the sellers profit by $500.00. As you can see this is another reason to get prequalified, so you and your agent can have the knowledge to negotiate in your best interest

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Georgia Residential Mortgage Licensee #14594


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