Closing Costs for your New Home in Scottsdale

Realtor wants you to know what you can expect to complete your Scottsdale home purchase

Closing costs are a bundle of fees that are part of any home buying or selling process.

Some costs are negotiable between each party but many closing cost fees are assigned automatically to the buyer or seller…and certain costs like property taxes are split proportionally, or pro-rationed, among the buyer and seller.

Continue reading to learn more about the closing cost you can expect when purchasing a home in Scottsdale along with what the seller will most likely pay. Any closing costs outside of these listed below can be negotiated between the buyer and seller.

Funds for your portion of the closing costs come from your down payment so be sure you have the necessary funds set aside for this.

Scottsdale home buyer closing costs

When applying for a loan for a home in Scottsdale, lenders are required by law to give you a good-faith estimate of what your closing costs will be. Amounts can vary depending on several factors – loan type and terms of the purchase agreement are just a couple. And costs associated with applying for the loan are usually paid up front.

Typical closing costs for a Scottsdale home buyer include:

• Down payment
• Loan origination fees (i.e. points, application fee, credit report)
• Prepaid interest
• Inspection fees
• Appraisal
• Mortgage insurance
• Property insurance
• Title insurance
• County documentary stamps
• Property taxes (prorated)
• Other costs negotiated with seller

Scottsdale home seller closing costs

One the primary closing cost for a seller is the remaining balance on their mortgage, if they have one. Before the closing date, the escrow officer will contact the seller’s lender to confirm the amount needed to pay the loan in full.

At the closing, the seller’s loan is paid along with any other closing costs before they receive any proceeds from the sale.

Other closing costs for a seller of a home in Scottsdale include:

• Broker’s commission
• Transfer taxes
• Documentary stamps on the deed
• Title insurance
• Property taxes (prorated)
• Other costs negotiated with buyer

Of course, there are many closing costs that are negotiated between the buyer and seller. For example, the buyer may require the seller to fix some siding before closing. Or, a buyer may want to have more money for up-front expenses and pay the full asking price if the seller agrees to pay all of the allowable closing costs.

Other pro-rationed closing costs, like property taxes, are split between the buyer and seller. Let’s say you close on a new home in Scottsdale in June. The sellers have lived in the home for half a year, but the tax bill will not be issued until the following year. To make things more equitable, the taxes are prorated and the seller credits the buyer for half the taxes at closing.

There’s no wrong way to negotiate closing costs, just be sure everything is written down in the purchase agreement.
Have any questions about closing costs or ready to seek out and close on a new home in Scottsdale? Contact premier realtors in Scottsdale and get started today.

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