The collection of fees associated with the buying or selling of a Tucson Home are called closing costs. Some of these costs are typically assigned to either the buyer or the seller; the other costs are usually negotiable.
Buyer closing costs: When a Tucson Home buyer applies for a Tucson Home Mortgage, the lender is required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, such as what type of loan they are using and the terms and conditions of the purchase agreement. Often, some of the closing costs, especially those associated with the loan application, are paid in advance. Some typical Tucson closing costs include:
The Down Payment,Loan Fees (Loan Points, Application Fee, Credit Report), Prepaid Interest, Inspection fees, Appraisal, Mortgage Insurance, Hazard Insurance, Title Insurance, Property Taxes (prorated) and Homeowners Association Fees.
At the closing, certain costs are often prorated (or divided) between buyer and seller. The most common proration’s are for Property Taxes and Homeowner Association fees. This is because Tucson property taxes are typically paid at the end of the year and HOA fees are often paid in advance.
Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won’t come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing. Similar situations apply to the HOA fees.