Closing Costs & Escrow

Closing Costs

There are certain typical fees related to closing the sale of a house. These costs are often split between the buyer and seller, as instructed in the sales contract. Many are customary, but there are nuances to each, so you’ll want a real estate expert in Iowa to help guide you through the deal.

Closing costs that are tied to your mortgage:

  • Points (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Account
Taxes you may be responsible for at closing:

  • Property Taxes
  • Transfer Taxes and Recording Fees
At closing, these fees are often due:

  • Homeowners Insurance
  • Flood or Quake Insurance (optional)
  • Private Mortgage Insurance (PMI) (optional)
  • Title Insurance
How These Costs Affect You

Sellers: As we get through the details of your sale, We’ll not only work to get the highest sales price, but we will also push for limited closing costs. And once we’ve reached an agreement, we’ll fully clarify the closing costs so you are aware of exactly what you’re paying for.

Buyers: If you’re buying a property in Polk County, you will receive a “Good Faith Estimate” (GFE) of closing costs within three days of submitting your loan application. The estimate is based on the loan officer’s previous experience and is required to be within a suitable range so you’re not stunned when you come to closing time. A member of our team will be glad to look over the GFE with you, answering your questions and highlighting any estimates that seem questionable.

Escrow

A neutral, third party (known as the escrow holder or the escrow agent) is hired to assure your house closes on time and the process goes smoothly. A home is said to be in escrow when in the closing process, money is held by a third party on behalf of two parties when the transaction is taking place. For example, in an Internet purchase, PayPal is the reliable third party that holds the buyer’s cash, and then disburses the funds to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the sellers and the buyers are performed prior to the sale being finished.