Six Lakes Realty

The In’s and Out’s of Closing Costs in Chetek WI

When you arrive at the closing table, there is one more set of costs to consider before all is said and done. However, the amount you can expect to pay in closing costs can easily be figured based on the mortgage loan amount of the sale or purchase price. Once you have a deal in the works and a closing date on the calendar, you can estimate your costs and feel more prepared to wrap everything up.

But who pays what? If you are new to the local real estate market or haven’t bought or sold a home in years, below are a few key points about closing costs.

Buyers and sellers both pay closing costs
In a Chetek WI home closing, buyers and sellers have costs they will need to cover. For the buyers, many of these costs come from the origination and processing of their mortgage loan. For sellers, they often include one of the largest portions of the sale— the real estate commission.

Buyers typically have more expenses
As I mentioned above, many of the buyer’s closing costs come from the loan. These can include the appraisal fee, origination fee, credit report fee, recording fee, notary fee, title insurance, prepaid interest, prepaid insurance, to name a few. It’s important to go over each expense with your lender to understand what each covers and how it affects your loan.

Sellers often pay more
While the buyer may have more expenses bundled in their closing costs—including the dozens of fees that can come with processing a loan—it’s the seller that often pays more. The seller has fewer items listed on their closing statement, but is typically responsible for paying the commission which is based on a percentage of the total sale price of the home.

Costs can be negotiated
Closing costs can be negotiated in your real estate transaction. For instance, a drop in the purchase price may not have that much of an impact on your overall loan payment, but asking for a credit for closing costs could save a buyer from coming up with extra money up front.

The Chetek area real estate market is heating up for the summer season and our team at Six Lakes Realty is here to help you navigate both the buying and selling process! Give us a call today!

John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806

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