When you sell or buy a home, fees will normally be paid by both parties. In some cases, the seller may choose to cover all the closing costs if the buyer agrees to pay the asking price for the house. Our real estate agents can provide you with a full list of closing costs for both buyers and sellers. These closing costs are mandatory and must be paid before the paperwork can be completed.

• Loan origination fee – The loan origination fee is required by the bank to process your mortgage and prepare all the paperwork for your closing. This is normally paid for by the buyer as part of the lending process.

• Appraisal – An appraisal is often required by the lender to ensure that the home you are buying is worth the amount of money you are trying to borrow. Most buyers will pay for an appraisal to ensure the home they are looking it is worth the investment and is valued correctly when it comes to property taxes and other expenses.

• Inspection – An inspection is requested to ensure the home and its many features are in good condition. Minor problems may be discovered that can be used to negotiate a more affordable price. Requesting an inspection will ensure any problems are uncovered before the closing and your home is move-in ready when you take possession.

• Title search fee – A title search fee is required on all Crookston homes for sale to ensure the home is free and clear of any liens or judgments from the previous owners. A title search only takes a few days and will not impact the sale of your home unless a lien is found. The lien must be taken care of through the sale or by the owner before the property can be legally transferred to the new owner.

• Taxes – When you buy a home, sales tax will also be rolled into the price as part of the closing costs. This is one fee that is non-negotiable and will be dependent on the final sale price of the home. The sales tax must be paid prior to the deed being transferred.

• Mortgage insurance – Your lender will want to make sure that everything is in order before they financially back your loan. Mortgage insurance is used to protect the lender if something is uncovered at a later date that makes the sale of your home null and void. This ensures they are paid back if they cannot collect from you.

• Recording and transfer fees – Buyers who are interested in East Grand Forks homes for sale will also have to pay recording and transfer fees. Recording fees are paid so that the proper paperwork can be filed with the government showing the sale of the home. Transfer fees are also paid to transfer the deed from one owner to another.

• Attorney fees – Attorneys are hired to draw up the sales contract between the homeowner and the buyer. Working with an attorney ensures that the sale of the property is legally binding. It also ensures both parties' rights are protected if something is found to be wrong with the home or the buyer defaults on a land contract.

• Real estate agent commission – Any time a property is sold with the help of a real estate agent, a commission must be paid at the end of the deal. This is often a percentage of the final sale price of the home.

Understanding all the costs associated with the sale of a home is important. Contact our office to find out more about closing costs and the process you go through when you sell or buy a new home. We can provide you with the information you need and help you get the process started. Our agents are always available to answer any questions you may have.