Such A Deal! : House Hunt

When I bought my first home, I didn't know nuthin'. It was a booming real estate market, bidding wars were going on all over the place, and no one took the time to explain the ins and outs of smart buying to me, particularly my real estate agent, who wasn't all that experienced herself and who certainly had bigger commissions to make than my budget could provide her.

So "closing costs"?  I thought they might be half a percent of the total sales price. Big deal, right? Just the equivalent of parsley on the side of your plate to go with the cheeseburger and fries.

What a shock to find out that (a) I had to pay them, over and above the price of the home and (b) they were thousands of dollars!  Six to 10% of the total sales price, according to most real estate articles on the web, depending on the laws of your state, county and city.

At closing, the financial grand poobahs make out a list of what the seller and the buyer each owe and are credited, down to association fees and taxes calculated to the day of the home sale. Closing costs can also include lender fee, title insurance fee, closing fee, notary fee, title search fee, and about 20 other fees.

What do they all have in common? Everyone's got their hand out, and who's paying them? You are, for the most part. 

If I could have a heart-to-heart with every homebuyer in the world, I would look them dead in the eye and tell them this: Every single person in the room with you at closing is being paid by you and your money. Don't let them treat you like you're an annoyance or a rookie. When it all comes down to it, you're the one writing the checks that they'll all be cashing. 

Without you, there's no deal, and you deserve all the information and respect that they can give you.

Here are a few articles to explain closing costs in greater detail:

• Closing Costs Explained
• Ginnie Mae: What's Included In Closing Costs?