It's the big day!

The day you go to the title or escrow company, sign your name on the dotted line, hand over a check and prepare to take ownership of your new home.

The buyer and seller will pay "closing" or settlement costs, an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of property.

Closing costs are allocated to the buyer or seller (separate charges) and paid to different entities for the services associated with the transaction.  Some closing costs might include real estate commissions, appraisal fees, loan fees, escrow charges, advance payments like property taxes (city and county), homeowner’s insurance, title insurance, pest inspections, etc.

Keep in mind that your closing funds should be in the form of a cashier’s check made payable to the title company or escrow office in the amount requested, or by wired funds.  A personal or out-of-state check could delay your closing because of clearance of such checks.

Common Property Taxes

City transfer tax: tax paid to the state or local government as a percentage of the property’s value.   The amount of the tax is usually based on a percentage of the property’s selling price, but the exact amount is determined by the city where the property is located.

County transfer tax: tax paid to the state or local government as a percentage of the property’s value.   The amount of the tax is usually based on a percentage of the property’s selling price, but the exact amount is determined by the county where the property is located.