There are many real estate terms a first-time buyer may not be familiar with – and that’s ok. As a Bluffton Realtor, it is my job to make sure you understand the terminology, so you feel comfortable when you begin to look at homes for sale in Bluffton.
An important thing to know about when considering Bluffton homes for sale is closing costs. First, a real estate closing is when the title of a property is transferred from the seller to the buyer. The costs and fees associated with buying your home that are paid at the closing of the real estate transaction are called closing costs.
Closing costs are typically broken down into 2 categories: recurring and non-recurring. Recurring costs include things such as pre-paid property taxes, insurance, and interest. Some of these expenses are paid each year via escrow. The non-recurring closing costs include things such as escrow and loan fees.
How Much Are the Closing Costs?
The total closing costs in SC are less than 3% of the amount of money borrowed for your home loan. For example, if you were looking at homes for sale in Bluffton for $300,000 the amount of the total closing costs would be around $9k or less.
Tips to Reduce Your Closing Costs
- Part of the closing costs are pre-paid interest on the loan. Closing near the end of the month will mean that less interest is due on your loan for that month, reducing your closing costs.
- Lenders vary in the amount of closing costs they charge to clients. Compare lender fees and interest rates to save thousands of dollars in closing costs. Also, feel free to negotiate closing costs with your lender to reduce your fees.
- Sometimes you can trade a higher interest rate in exchange for a reduction in closing costs and sometimes even eliminate them completely!
- Another option is to ask the seller to pay for closing costs when purchasing homes for sale in Bluffton. Most lenders allow the seller to pay up to 3% of the purchase price towards the buyer’s closing costs.
As an experienced Bluffton Realtor, The Dufrene Group can help you understand the home buying process and assist you with finding the home of your dreams. We’d love to show you your options! Contact us today to get started or search available homes for sale in Bluffton here!