Planning to move to Alabama? Here is what you need to know about the truth of the closing costs in Alabama.
Closing costs are the administrative and legal services such as an organization fee, title search, appraisal, and home inspection and are paid on closing day. Homebuyers consider the closing cost before they officially move into their new homes. Closing costs vary depending on your lender, your loan, and your way of payment (if you are paying in cash or not).
Now, we’ll focus on the closing cost in Alabama. Alabama ranked 8th with the lowest closing cost (that’s an upside in choosing Alabama). The value of an average home sale price is $100,000 to $200,000 expect the closing cost to start at $1,185.39 and reach $4,741.56.
Let’s say your new home is priced at $150,000, you can expect the closing cost to be $1,800 (this includes taxes). That makes 1.20% of the property’s purchased price.
It shows the closing cost percentage in the home sale price is settled from 1.19% to 2.37%. Closing costs vary and don’t have a fixed price.
Alabama closing cost calculator
One thing you can do when you are buying a new house in Alabama is to negotiate with the seller, who is going to cover some of the encompassed fees of the closing cost. It is also possible to split the bill between you (the buyer) and the seller.
You can look upon the internet for an online Alabama closing cost calculator you can use to input the fees and calculate an estimate of the closing cost.
Alabama land title Daphne, AL
Alabama Land Title is a company in Alabama that specializes in the closing process and is part of the Legal Services Industry. They offer services in title search, title insurance, and title policies. Working with them will allow you to have a smooth and efficient closing process with your lender.
Alabama Land Title has worked with many lending institutions since 1909. Their services have been proven efficient by many clients. They currently have a total of three offices in Alabama. One is in 8549 County Rd. 64 251.626.2518 Daphne, AL.
Closing cost in Fairhope fl
Closing costs don’t have a fixed price, there are many factors to consider, but we can always estimate.
Now, if you are planning on buying your very own home in Fairhope, AL, we recommend that you work with legal services and real estate experts who will help you break down the fees and estimate the total closing costs.
Here are some of the fees included in Fairhope, AL closing costs:
Starting with the purchaser’s closing cost. It consists of:
Title Search Costs
Title search costs are usually split between the buyer and seller. Each may pay either $100 to $150.
The cost of title insurance varies depending on the size of the loan and the price of the home. Title insurance is provided to homebuyers as a safeguard against any errors made during the title search. Title insurance is required by a lot of mortgage businesses.
Loan Origination Fees
This fee is 1% of the loan amount. Note that a buyer’s closing costs in Alabama usually go to the mortgage loan origination fee.
Private Mortgage Insurance
Buyers who are unable to put down a minimum of 20% must purchase private mortgage insurance from a mortgage company. It is normally between 0.3 and 1.5 percent of the loan amount.
Appraisal fees cost around $450.
The escrow fee costs between $500 to $800 are charged by the title company to close the deal. It can be split between the parties.
Attorney fees start at $75 and $100. It can be split between the buyer and the seller.
Taxes and Recording Fees
Transfer taxes are $1 for every $1,000 of the home sale price.
Home Seller Closing Costs in Alabama
Here’s a breakdown of Alabama home seller closing cost:
The mortgage fee varies upon the lender. It consists of a principal balance, a recording fee, interest accrued from the last payment, or any statement fee the lender might charge the seller.
In Alabama, Real estate agent commission fees may amount to about 5% to 6% of the house’s market price.
Any overdue bills, prorated real estate taxes, and homeowner’s insurance must be settled by the seller.
Real estate attorneys help on managing the purchase and sales contract and all needed legal documents in the closing process. In Alabama, attorney fees play between $75 to $100.
HOA Dues, Document Fees
For properties under the Homeowners Association or condo units, there is a need for the seller to pay HOA and document fees during the start of escrow, as well as a transfer fee.
Home Inspection and Repairs
Sellers may pay for the house inspection. Expect to pay between $300 to $500.
The professional appraiser evaluates the cost or market value of the house. They usually cost around $200 to $300.
First-time homebuyers can always apply for mortgage programs that can help them lessen the amount to pay in closing costs.
Closing costs may be minor compared to other expenses in home buying; however, not including them in your budget might give you a headache. After all, they are still part of every home buying process.
If you have plans on purchasing a new home in Alabama, contact our team today so we can assist you with your queries regarding Alabama closing costs.